It’s no secret that right now, Austin is in a seller’s market.
A seller’s market occurs when there is more demand from buyers for housing than there are homes available. A buyer’s market is the reverse and occurs when there are more homes available than buyers looking to purchase them.
Here’s how to put your best foot forward when submitting offers during a seller’s market.
1. Have Your Pre-Approval Letter Ready
Most sellers will not consider accepting an offer without a pre-approval letter from a local lender attached to it. While getting pre-approved for a mortgage is a relatively simple process, it can take several days to complete. A best practice is to get pre-approved before you start house hunting, so when you find a home you love you’re prepared to submit a complete offer.
2. Wear Your Decision-Making Hat
When the perfect property comes along during a buyers market, it’s generally okay to take a few days to think over whether you want to submit an offer or not. In a seller’s market, those few days often cost buyers the contract. When shopping for homes in a seller’s market, be prepared to put an offer in the day you find ‘the one’.
3. Know Your True Budget
Especially in Austin right now, multiple offer scenarios are not only common but to be expected. This often means that an offer price of list price or higher is needed to get your offer accepted. As your Realtor, it’s my goal to make sure you never overpay for a property and never exceed the budget that’s right for you. Knowing your absolute max ahead of time helps ensure that we know when to walk away, and when to raise an offer price to ensure it’s the winning one.
4. Work with an Experienced Realtor
Last but not least, make sure whomever you choose as your Realtor has experience negotiating in multiple offer situations! I’ve won contracts for my clients over tiny things like submitting a cleanly-written contract, providing a character reference, or working the contract in a way that puts a strong offer forward while still giving buyers an opportunity to get closing costs covered or walk away if needed after an inspection.
Buying during a seller’s market can take a little more work and patience but is still very doable. Austin shows no signs of slowing its growth, so please reach out if you have questions about buying or selling. I’d love to be your resource on all things real estate!
October 20, 2020