Tips For Buyers In This Seller's Market

Buying a home is never easy. Thanks largely to the effects of the Covid-19 pandemic, however, doing so is trickier than usual. With housing inventory levels lower than they’ve been in years, steadily increasing home values, rock-bottom mortgage rates, and white-hot demand, we’re in the midst of a sellers’ market unlike any in recent memory.

Challenging though it may be to find homes for sale in Kansas City, all is not lost. Keep these pointers in mind to increase your odds of securing the perfect home – even in an unprecedented sellers’ market.

  1. Be Ready for Competition – Although new construction has been ramping up, it’ll be a few years before the activity has any appreciable impact on low inventory levels. Therefore, any house that you consider will surely be on several other buyers’ radars too. You’ll almost certainly have to contend with cutthroat bidding wars. One way to minimize this issue is by looking at homes slightly below your budget. Another is to be ready to put in a bid above the asking price the instant you find a home that suits your needs.
  2. Line Up Extra Cash – Don’t wait until you’ve pinpointed the right house before drumming up any extra cash you may need for a down payment or other closing costs. Whether you’re turning to your parents or others for help, ask them for assistance – and get the money in your savings account – before actively looking at options.
  3. Obtain a Full Pre-Approval – Before doing anything else, find a lender to work with through the process. Have them give you a full-fledged pre-approval – one that has gone through underwriting and everything – to show sellers you’ll be able to act fast. Given that you’ll be competing with other buyers with pre-approvals and even cash, this is one step you won’t want to skip.
  4. Know What You Want – More than ever, it’s imperative to know exactly what you need when buying a house. Now is not the time to leisurely window-shop options that fall beyond your most pertinent parameters. Instead, narrow things down to homes that truly meet your most crucial requirements, and remember that a little flexibility – or even a lot of it – should go a very long way.
  5. Be Ready to Act – When you find a house that’s truly perfect for your family, resist the temptation to go home and mull it over a little more. Instead, be ready to pounce then and there. With funds in the bank, a pre-approval in hand, and the flexibility to work with various pluses and minuses, you should feel confident in making an offer for the right house on the spot. Doing so could even help you avoid the dreaded bidding wars that have become such regular features of today’s white-hot sellers’ market.

It may not be the best time for homebuyers, but houses are changing hands left and right. There’s no reason you can’t buy a great house even in these unprecedented times. Keep the above tips in mind to avoid the worst aspects of today’s sellers’ market conditions.

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