While the nationwide mortgage market fluctuates regularly during the course of a given year, the last few years have mostly been in a state that experts would refer to as a “seller’s market.” For those who haven’t heard the term, it generally means that demand for new homes outweighs the supply currently available, meaning sellers are in a good spot and will generally have strong competition among buyers for their available properties.
At City Creek Mortgage, we’re here to help you with everything from finding the best mortgage rate available to navigating the market as it sits during your purchasing window, plus everything in between. If you’re dealing with a seller’s market, what are some ways you can differentiate yourself from other buyers and land the home of your dreams? Here are some basic tips.
Being prepared with all the financial documents and approvals you need to move forward with a purchase can go a long way in the process. One of the first steps here is pre-approval, a process where you submit your financial data and receive information regarding your purchasing power – the kinds of mortgages you can be approved for, the range of mortgage sizes you can afford, and other similarly important details.
After pre-approval, you’ll receive a letter documenting the above areas. You can use this letter to show sellers you’ve already taken the first step in the process and are prepared to move forward if their home is attractive to you.
Along with pre-approval, there are other areas you can attend to while ensuring that every t is crossed and every I is dotted. For one, you can begin your home research well in advance, especially if you’ve done some basic math and at least have an idea of what you can afford. Taking the time to asses the market in your area and become familiar with it will help you be ready to navigate it once the time comes to make your own purchase.
Avoiding Bidding Wars
In today’s home market, the bidding war is less popular than it used to be – and less desirable for many sellers, who don’t want the hassle and fuss and would rather simply put all the cards on the table. In many situations, we recommend being up-front and making your best offer right away. If it’s enough to beat the competition, great. If not, you and the seller can both move to other options without a delay.
One tip that might break a tie between you and another buyer with a similar offer: A personal touch in the offer, such as a phone call or maybe a brief letter explaining what you envision for the home and your family. Sellers may feel an attachment to the home they’re selling, and may value someone who will care for the home and make it their own.
For more on standing out in a seller’s market, or to learn about any of our mortgage loan services, speak to the staff at City Creek Mortgage today.