{"id":11532,"date":"2020-02-19T12:25:30","date_gmt":"2020-02-19T12:25:30","guid":{"rendered":"https:\/\/kenyahomes.co.ke\/blog\/?p=11532"},"modified":"2020-02-20T07:42:15","modified_gmt":"2020-02-20T07:42:15","slug":"buying-in-a-sellers-market-9-ways-to-win","status":"publish","type":"post","link":"https:\/\/kenyahomes.co.ke\/blog\/buying-in-a-sellers-market-9-ways-to-win\/","title":{"rendered":"Buying in a Seller\u2019s Market: Ways to Win"},"content":{"rendered":"\n

A seller\u2019s market is when there are more homebuyers in a particular area looking to purchase a home than actual houses listed for sale. A seller\u2019s market usually results in rising home prices and stiffer competition among homebuyers. Also, home sellers will have the upper hand when it comes time to negotiate. <\/p>\n\n\n\n

However, even if the market is indicating a seller\u2019s market and the competition is fierce, rest assure that you can still buy a house. <\/p>\n\n\n\n

Be Ready to Act Instantly in a Seller\u2019s Market<\/strong><\/h5>\n\n\n\n
1) Get Pre-Approved for a Home Loan<\/strong><\/h6>\n\n\n\n

One of the smartest things you can do to ensure your chances of buying the home you want is to apply for a pre-approval<\/a> on a mortgage. Applying for a mortgage after making an offer on a home tells home sellers you may not be as motivated to buy as others. <\/p>\n\n\n\n

An underwritten pre-approval<\/a> for a mortgage usually takes about 24 hours and is strongly recommended for those looking to buy and want to be competitive in a seller\u2019s market.<\/p>\n\n\n\n

Furthermore, you\u2019ll receive a pre-approval<\/a> letter from your lender indicating how much of a mortgage you\u2019ve been approved for. Sharing this letter with home sellers shows them you won\u2019t be wasting their time and that you\u2019re motivated to buy their home.<\/p>\n\n\n\n

2) Get a Great Real Estate Agent<\/h6>\n\n\n\n

The home buying process can be stressful and sometimes overwhelming. Having a great real estate agent<\/a> by your side throughout this process can help make everything go more smoothly and aid you in making an offer quickly when the time comes. <\/p>\n\n\n\n

This is particularly true if you are moving to a new area or a larger housing market. Your buyer\u2019s agent can provide you with keen insights into specific neighbourhoods, such as walkability, schools, and other local amenities. <\/p>\n\n\n\n

They will also help you when it comes time to make an offer, since they know what\u2019s happening in the local markets and will use that knowledge to negotiate effectively on your behalf. <\/p>\n\n\n\n

3) Write an Offer Letter Catered to Each Home Seller<\/strong><\/h6>\n\n\n\n

Offer letters<\/a> to home sellers have become more and more common among homebuyers in a seller\u2019s market and especially true with competitive neighbourhoods. So, how do you write a real estate offer letter that will grab the home seller\u2019s attention? <\/p>\n\n\n\n

First of all, don\u2019t just tell the home sellers you want to buy their house, tell them why<\/em> you want it. Home sellers are people too and will be appreciative to hear what you love about their home. Additionally, if you notice that you share something in common with the home sellers, mention it in your offer letter. <\/p>\n\n\n\n

4) Buy with Cash if You Can <\/strong><\/h6>\n\n\n\n

For sellers, an all-cash is very appealing and can lead to a higher likelihood of you winning the house. If you don\u2019t have to use a lender, there\u2019s no financing contingency, which shows the sellers that you will most likely not pull out of the deal due to financial issues.<\/p>\n\n\n\n

If you pay in cash the sale can also happen quickly and, overall, lead to a smoother home sale. Of course, many of us can\u2019t afford an all-cash offer and will need to rely on other tactics.<\/p>\n\n\n\n

5) Put More Earnest Money Down<\/strong><\/h6>\n\n\n\n

Earnest money<\/a> is the amount of money you put down to show how serious you are in purchasing a home, also known as good faith money. Earnest money protects the home seller in case a homebuyer backs out of a home sale after the offer was accepted by the home seller. <\/p>\n\n\n\n

Unless a homebuyer backs out due to something coming up in a home inspection or appraisal, the home seller will get to keep the earnest money. Earnest money<\/a> can also be a great tactic to use if you\u2019re shopping in a seller\u2019s market or competitive neighboorhood. <\/p>\n\n\n\n

Home sellers tend to favour buyers who put down a larger installment of earnest money <\/a>because it shows that you are serious about your offer and giving you a leg up on the competition.<\/p>\n\n\n\n

See Also: Can a Seller Keep a Buyer\u2019s Earnest Money Deposit?<\/a><\/p>\n\n\n\n

6) Don\u2019t Have Any Extra Contingencies<\/strong><\/h6>\n\n\n\n

In a seller\u2019s market, you may want to submit an offer without certain contingencies as a way to stand out among competing offers. Though it is still advised to keep the home inspection contingency, there are other contingencies you can certainly pass on. <\/p>\n\n\n\n

You most likely won\u2019t need a mortgage contingency since you\u2019ll already be pre-approved for a home loan and don\u2019t ask for high-maintenance contingencies such as only buying the house if your current one sells or that you can knock down a wall. <\/p>\n\n\n\n

Essentially, keep your contingencies to a minimum so the home seller has fewer hurdles to complete in selling their home.<\/p>\n\n\n\n

7) Be willing to make concessions during negotiations<\/strong><\/h6>\n\n\n\n

During the negotiation process, you may have a better chance of closing the deal if you are willing to make compromises. There may be some things that you are not willing to budge on such as a home inspection, but maybe you don\u2019t ask the home seller to redo the back deck or paint the house before you move in. This will allow for a smoother closing process and for you to move into your new home more quickly.<\/p>\n\n\n\n

Buying a home can be difficult, especially if you are buying in a seller\u2019s market. Use any or all of the recommended tips to stand out from the competition to help you purchase your next home.<\/p>\n","protected":false},"excerpt":{"rendered":"

A seller\u2019s market is when there are more homebuyers in a particular area looking to purchase a home than actual houses listed for sale. A seller\u2019s market usually results in rising home prices and stiffer competition among homebuyers. Also, home sellers will have the upper hand when it comes time to negotiate. However, even if […]<\/p>\n","protected":false},"author":1,"featured_media":11537,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"amp_status":"","footnotes":""},"categories":[12],"tags":[],"class_list":{"0":"post-11532","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-buy"},"yoast_head":"\nBuying in a Seller\u2019s Market: Ways to Win - Kenya Homes<\/title>\n<meta name=\"description\" content=\"They will also help you when it comes time to make an offer, since they know what\u2019s happening in the local seller's market...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kenyahomes.co.ke\/blog\/buying-in-a-sellers-market-9-ways-to-win\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Buying in a Seller\u2019s Market: Ways to Win - 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