A sellers’ market is different from the regular housing market- expect more buyers, less inventory, and a need to move quickly.
- There’s not much to choose from: Homes will get snatched up seemingly right after going on the market. Inventory is low due to the large number of buyers.
- Cash speaks volumes: Usually cash offers beat out any other kind. They become more common in a sellers’ market.
- Seller preferences are taken into account even more: Buyers’ agents will work extra hard to figure out what it is that makes the sellers tick in order to get their offer approved. Would the seller prefer a quicker closing date over a little extra cash? Would they be touched by a heartfelt note from a new family? These things are weighed more.
- Bidding wars are everyday occurrences: When the inventory is lower, more people will be vying for the same properties. There will be multiple people putting offers in, and usually each of those people making multiple offers. All of this is even more common if the property’s listing price is just right.
- Selling price gets raised above asking price: This is often a direct result of a bidding war. When a property is at the “sweet spot” of just under or at the home’s true value, multiple buyers will be attracted to it and each put their bid in, raising the price.
- Offer deadlines: These create urgency for the buyers to put their offers in and to keep outbidding the others.
- Escalation clause: These typically aren’t very common, but in a sellers’ market, they are more common. These are included in an offer, and let the seller know you’re willing to increase the amount of your offer up to a certain point if there are other higher bids.
- As a buyer, be ready to act quickly: This is no time to wait too long to make a decision. Obviously mull it over, but if you wait too long, you run a high chance of missing out on getting the house. “The home you saw today and want to think about tonight, is the home someone else saw yesterday and thought about last night.”