Are you searching for your first home? You might want to upgrade from a starter house and be ready to jump into the real estate market. Buying a home is a quite stressful process.
There are multiple offers flooding in on homes that are listed for a few hours. It is quite overwhelming to compete with buyers who put in cash offers without even stepping foot in a property that’s for sale. After all, it might be a good idea to wait until the market cools off in some situations. And some moves make you boost your chance when sellers have an advantage.
So, let’s have a look at several types of real estate markets in Port Aransas and how you get ready to put in an offer during a seller’s market.
Actions to take when you find a home in seller’s market
Make a most competitive offer first
The housing market in many areas is currently a seller’s market. This means that homes are selling for more than the asking price, and available properties are abundant. In order to be competitive in this kind of market, you need to make your offer as clean as possible without contingencies.
A clean offer is contingent on nothing outside of the seller’s acceptance; there are no financial contingencies (such as needing to sell your own home) or requests for concessions (for example, “I’ll offer $X if you agree to pay closing costs”). If you include these things, it can make your bid less desirable than other offers.
Determine you’re in a seller’s market or not
You can use two measurements to determine if you’re in a seller’s market — the absorption rate of homes for sale and the sales price-to-list price ratio. A low number on either scale means you’re more likely in a seller’s market.
The calculator first asks you what you want the absorption rate to be (1, 3, or 6 months), then it asks you how many sales occurred in the last 12 months and how many new listings entered the market. The calculator says that it’s a seller’s market with an average of 9 days on the market based on this information.
The second measurement is fairly simple. All you need to do is separate the price that the house has been listed for by how much it’s actually selling for. A ratio of 103% means it’s a really hot seller’s market.
Don’t be too picky
In a seller’s market, Port Aransas has homes for sale that are going quickly, and you might not have any option but to make an offer on a house you don’t love. However, with a limited inventory of properties, you also probably can’t afford to wait for the perfect house to hit the market. Therefore, it makes sense to make exceptions to your criteria for things that can be changed at this point in time. For example, you can add a bathroom someday, but you are not able to change the home’s location or lot size.
Make sure you hire a good real estate agent
If you’re selling in a seller’s market, it can be hard to stand out from the crowd and get your home sold. You’ll be required to choose an agent with proven expertise in the neighborhood that match your price range. And who will treat your property as if it were his own.
Because real estate agents are aware of the inventory in your area. They’ll be able to market your houses for sale in port Aransas most effectively. An agent with excellent negotiation skills is also important. As you want to sell for as close to the list price as possible.
Offer non-price factors
Some sellers will accept your cost if you offer some non-price considerations that can speed up the transaction, also called contingencies.
Seller will accept your price if you offer some non-price consideration that speeds up transactions known as contingencies. In a strong market, buyers consider waiving the financing that limits inspection to three to five days. It places huge earnest money to provide non-price consideration.
The more contingencies the buyer has, the significant risk the seller is likely to reject them in the seller’s market. Buyers help themselves by being flexible with dates in a contract that give sellers extra time to move out and make the seller’s offer more appealing to choose from starter home vs. forever home.
Be cautious
In the buyer’s market, you think to get away by taking a leisurely approach to your home search. It’s not going to work in a seller’s market. Keep a constant eye and set up visits to houses you are interested in as quickly as possible. Make sure to have a quick decision so you can beat competing shoppers.
Bottom Line: Make your offer stand out uniquely!
There are several things to think about when navigating a seller’s market to place an offer on a home. So it’s essential to take action quickly when you find the perfect house at Port Aransas real estate property. Take necessary steps and make sure you stand out in the competition. It shows the seller that you are a serious buyer who is willing to make the offer much desirable.
