What is a Seller's Market?
If you are looking to buy a new home, or even your first home you have probably heard the term Seller's Market. But what exactly does that mean? A Seller's market arises when demand exceeds supply. In other words, there are many interested buyers, but since the real estate inventory is low, sellers are at an advantage. In a seller's market homes sell faster, and buyers must compete with each other. This means multiple offers, often above asking price.
The average price here in San Antonio, TX as of February 2021 is $314,810, which is a 15% increase over this same time last year. With less than 2 months inventory, the hunt for a new home means you must be prepared. Here are a few tips to ensure you are on top of your game in today's seller's market.
1) Find a full-time agent who is available to show you homes
Not every agent is a full-time agent. In fact, when the market is good, many will get their real-estate license as a side hustle. Finding your family the perfect home in this market takes dedication. You need an agent who is not only full time, but ready, willing and available to open the door when a home comes on the market. Discuss your agent's availability up front, and stay in close contact with them via email or text.
2) REALTORS® can show you homes in real-time
Not all internet home search sites show you homes in real-time. Often times, homes are already under contract before you can even make arrangements to view. Your REALTOR® can send you homes in real-time, which means if a home comes on the market that fits your criteria, it is immediately emailed to you, and your agent can get to work on your behalf. A proactive agent will call to see if the home is available, and if there are currently other offers on the table.
3) Get Pre-Approved, not just Pre-Qualified
There is a difference between getting pre-qualified and pre-approved. A pre-qualification means that the lender has pulled your credit, and based on your credit score, and the income/asset information you have provided you are qualified to purchase a home up to a specific price point. A pre-approval is more definitive. Obtaining a pre-approval means that you have provided the necessary documentation needed to get loan approval. i.e. pay stubs, tax returns, proof of assets. The lender will provide a conditional commitment that you can submit with your offer. When you are going up against multiple offers, having a pre-approval puts you at a distinct advantage. It shortens the mortgage processing time, and lets the seller know that your offer is solid.
Get Pre-Approved today with our trusted partner Scott Cummins with Cornerstone Home Lending.
4) Be prepared to make an offer on the spot
Highly Trained agents, such as the agents at Phillips & Associates Realty know to be ready to make an offer on the perfect house. They have done their homework, and have the ability to write an offer on the spot, They will call the listing agent and let them know your offer is on the way. Waiting even one hour can make a big difference in this market.
5) Add a personal touch to your offer
Many sellers love the home they are selling. A home in which they raised their family, and shared years of wonderful memories. Give them a brief history of your family, why you love their home and why you want to buy it. Even add a photo of your current family to make your offer more personable. It could be the reason your offer is chosen over another.
And finally, try to keep your emotions in check. Your offer many not be chosen in a multiple offer situation, but that doesn't mean you didn't submit a great offer. Don't let yourself get frustrated! An even better house may be around the corner, or about to come on the market.
Happy House Hunting!