Buying in a Sellers Market in Davie FL

Buying in a Seller's Market

If you’re planning to buy one of the Davie homes for sale, you’re probably going to be buying in a seller’s market.  It’s not a problem – people do it all the time.  But, there are things you need to know to get the best deal.

What is a Seller’s Market?

Real estate markets are often defined as either a buyer’s market or a seller’s market.  It’s important to keep in mind that these labels change as the market indicators change.  To be a seller’s market, Davie realtors look at several indicator, including:

  • The number of homes on the market. When the “inventory” of homes on the market is low, there are fewer homes for buyers to choose from.  That puts the sellers in an advantageous position.
  • The sales prices are increasing. When the inventory of homes is low, sales prices tend to increase.
  • Average time on market decreases. When there are fewer homes for sale, those homes tend to sell faster because buyers don’t have as many homes to consider.

The Davie FL Real Estate Market is Currently a Seller’s Market

Right now, all three of the indicators above signal a seller’s market.  The number of homes on the market is slowly decreasing, sales prices are increasing slightly and homes aren’t staying on the market as long as they have been in the recent past.

Tips for Buying in a Seller’s Market

  1. Stick to Your Budget

Any time you plan to buy a home, it’s important to get pre-approved by a local lender before you start looking.  That preapproval will help you in negotiations, but it will also tell you the maximum price you should pay for a new home.  In a seller’s market, some people are tempted to continue increasing their offer price if there is competition for a house.  That’s not a bad strategy as long as you don’t offer more than the home is actually worth.  In addition, it’s a good strategy unless you overextend yourself by offering more than you can reasonably afford.

  1. Compile a Firm List of Needs and Wants

When you’re buying in a seller’s market, you need to be very clear about the things you can compromise on and those you can’t.  If you absolutely want your children to be in a specific school district, don’t even bother looking in another one.  If you’d like to have a swimming pool, but could live without it, considering a home without a pool is reasonable.  Don’t be tempted to give up on your “must haves” just because you want to buy a home.  You’ll undoubtedly regret it later.

  1. Set a Flexible Schedule for Reviewing Potential Homes

Things can happen very fast in a seller’s market.  The perfect home you see one day may be sold the next.  Work with a real estate agent who will keep you informed as new homes hit the market and make yourself available for a showing, even on short notice.

  1. Don’t Haggle on Price

If you’ve found the home of your dreams, a seller’s market isn’t the time to try to get a great deal.  If you don’t want to pay list price, keep in mind that there will be others who will.  Make an offer quickly and at market value.

  1. Negotiate Carefully

You may find some advice online saying that you should eliminate all contingencies from the offer.  It’s true that would be very attractive to the seller, but there are some areas where you just shouldn’t compromise.

You need to make the offer contingent on an inspection.  It’s always possible that a home will have hidden problems you need to know about in order to make an informed decision.  You typically need to make the offer contingent on obtaining financing.  Even when you’re pre-approved, you won’t know that the loan will go through until it does.

There are problems that can arise while your loan is in underwritten.  Some of those problems have nothing to do with you.  But, if you’re caught in a position where you must purchase a home and can’t get the financing, you’ll have a much bigger problem than simply losing out on the purchase.

You can do other things to make your offer more attractive.  Perhaps you can offer an earnest money deposit that is larger than the standard.  You might be able to offer the seller a day or two after close before you take possession.  Work with an experienced real estate agent to ensure you make the best offer possible without jeopardizing your interests.

 

When you’re buying in a seller’s market, it’s even more important to choose an experienced real estate agent who knows the local market, like those on the Teri Arbogast Team.  We can help you whether you’re a first-time home buyer, looking for NSU housing or relocating to Broward County.  Call us at 954-242-8030 or send an email for the professional help you need to make your next real estate transaction a rousing success!

We specialize in Broward County homes for sale in the Cooper City, Coral Springs, Pembroke Pines, Plantation, Southwest Ranches, Sunrise and Weston communities, along with the following Davie Florida locations:

 

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