IHR Real Estate Update May Edition
Matt BriedeSeptember 13, 2018
Metro Detroit Real Estate Overview
Serving Livingston, Macomb, Oakland, Washtenaw and Wayne counties
Buyer Hacks to Survive a Seller’s Market
Just because it’s a seller’s market doesn’t mean that buyers don’t have any advantages. Here are at least 8 things you can do right now to give you an edge!
1. Hire a Buyer’s Agent
If you’re looking to buy, and find a house you like, don’t just call the number on the sign – get a buyer’s agent on your side. A buyer’s agent is a licensed real estate agent that works for you and has your best interests in mind. They’ll do everything they can to get you the best deal.
2. Be Flexible with ‘Must-Haves’
Try to keep an open mind when searching for your ideal home. It’s one thing to need an extra bedroom that you can convert into an office, but if you’re deadset on white granite countertops in the kitchen then you’ll only limit your options. Carefully consider which of your ‘must-haves’ really need to be there when you move in, and which you may be able to add later.
3. Expand Your Search Area
Can’t find a home you like in your ideal city? Try expanding your search area. For example, if you’re having trouble finding a home in Royal Oak, then take a look at nearby cities like Berkley, Madison Heights and Clawson. Neighboring communities will often share the same advantages as the one you’re looking at and give you more options to choose from.
4. Get Listings from the Source
Make sure your agent is sending you listings directly from the Multiple Listing Service (MLS). That’s the database of all the most current and up-to-date homes for sale on the market. 3rd party sites like Zillow and Realtor.com may not update as frequently as the MLS, so what you see there could be old or have inaccurate information.
5. Act Quickly on New Listings
We’ve mentioned this hack before, but it’s so important that it bears repeating. A seller’s market is defined as a market where there are many more buyers than homes available. If you find a home you like, pounce on it – as in, submit an offer before you leave the showing.
6. Consider Showing Your Full Preapproval Amount
This hack is a little more situational. If you’re in a multiple-bid scenario (which is highly likely in this market), then this is a good way to strengthen your offer. Sellers will see that you’re well-qualified and less of a risk. It might seem counter-intuitive to tip your hand, but showing you have more secure financing far outweighs the highly unlikely loss of negotiating power.
7. Start Selling Now
If buying your next home is contingent on selling your current one, get started now. Your offer may not be as strong if it depends on the sale of your current home. Plus, you can spend some time on the other side of the table and get some insight into what sellers you approach might be looking for!
8. Offer an Appraisal Guarantee
Appraisal guarantees are a great way to relieve some of the seller’s stress and make your offer stand out. Basically, an appraisal guarantee is you telling a seller that you’ll pay a certain amount of money above the appraisal value if it’s lower than your negotiated sale price. Just make sure there is a maximum cap on the money you agree to pay over the appraisal value, and that you’re in a position to afford it if it comes to that.
That’s All, Folks!
That wraps up this Real Estate Update. If you want more real estate advice, check out the suggested blog posts below. See you next month!