How to Survive a Seller’s Market
Finding your dream Dutchess County house at any time can be a challenge. But house hunting during a Dutchess County seller’s market adds an entirely different level of difficult.
This is what potential buyers are going through right now. When the supply of Dutchess County homes is low but plenty of buyers are out there, the sellers are in the driver’s seat. This means that buyers need to bring their “A game” or just stay home.
While it can feel like it is ruthless out there, we have some seller’s market survival tips to help you get the competitive edge.
Watch for Signs
Sure, people are saying you’re in a seller’s market. But how do you really know? While markets obviously vary depending on where you live, there are the seller market red flags: houses are selling super fast and for more than asking price.
Check the listings for your Dutchess County area. If most of the homes have been on the market for more than six months, relax, you are not in a seller’s market. But if you see inventory flying off the market and not a whole lot sitting, look out.
Be Ready
If you want to win in this market, you have to make house hunting a priority. It’s not just something you fit in here and there. This is going to eat up a lot of your time so be prepared.
Only looking now and then when it’s convenient is just wasting your time. Tackle house hunting like job hunting. Look at listings regularly. If someone calls about a viewing, jump at it as soon as they can show it – even if it’s not the most convenient time for you.
Get Pre-Approved
Talk is cheap. The way to be taken seriously is to show up with proof that you can get this house. Hard evidence in hand is what will get this job done.
A mortgage pre-approval letter and a “proof of funds” form from your bank is what you need to have on hand. This way, the seller knows you can put your money where your mouth is.
No Hardball
Typically in the Dutchess County home-selling scenario, buyers make an offer below the seller’s asking price. Then the seller counters and the negotiating game ensues. But not in a seller’s market.
In a seller’s market, there is little to no room for price negotiations. In reality, you could end up paying more than the listing price if there are multiple bids.
There is no time for lowball offers in this market. It’s a waste of time. Just put in an aggressive offer first to get the job done.
But, you don’t want to blow your entire budget either. You still have to be able to pay that mortgage! No matter the offer you put in, it must be a decision that you are comfortable making.
What Contingencies?
Typically, when Dutchess County home buyers make an offer they include some contingencies. For example, they’ll purchase the home as long as the inspection goes well. Or they’ll purchase the home if they can get a mortgage. That doesn’t fly in a seller’s market.
You may want to drop one or two of these caveats to stand out to sellers. Sellers want as few hurdles on the way to closing as possible. But again, these must be compromises that you are willing and able to live with.
Look Far and Wide
It’s not unusual to feel outpriced in your favorite Dutchess County neighborhood when it’s a seller’s market. But that doesn’t mean you won’t find your dream home. It just means that you may need to search in an up-and-coming neighborhood nearby.
While such Dutchess County houses may not be great for everyone, if you don’t have kids in school or are more flexible you may be able to buy for a lower price and cash in big later when the neighborhood is more desirable.