Buying in a HOT Seller's Market - Don't Be Unprepared

Don't be caught off guard in a Seller's Market, Buyers. This is the time when you need to trust in your agent and their advise on the current market conditions.  In a HOT Seller's Market it can be more stressful and difficult. Long gone are the days of "sleeping on it" and making a decision in two days. If you do that, your dream home will more then likely be gone before you know it.

Buyers are not knowledgeable about the market when they are first starting out to search for a home. They don't always know how the market moves from one season to another, much less from month to month.

Markets can change almost overnight in the blink of an eye. When the market changes to a seller's market, a buyer's home buying strategy needs to change with it. In a seller's market, a home buyer is unlikely to be successful challenging the seller with price due to multiple buyers offers. Its competitive out there, so they need to think competitively if they want the home they fell in love with.

How to prepare to make an offer in a Seller's Market. 

In a Seller's Market, time is of the essence. Multiple offers happen with more regularity in a sellers' market than a buyer's market. That's because by its very nature a seller's market is defined in part by low inventory and lots of home buyers. A beautiful home that is priced well can attract more than one offer. Remember, you might not be the only buyer, there are buyers sitting on the fence waiting to jump at a great home when it comes on the market.

• Price. Word to the wise, do not offer less than list price in a Seller's Market. Don't test the waters with the Sellers to see what their willing to accept. There may be another buyer right behind you with a higher offer. Realize you may need to offer more than the amount the seller is asking.

• Do not to add contingencies. This is not the time to ask the seller to accept contingencies on anything other then the home inspection and repairs. The buyer behind you may have more clean offer and the seller may accept there's over yours due to them asking for less. 

• Be ready with your Pre-approval. Waiting until the last minute to find a lender, get your documents the lender needs and getting your pre-appoval letter in hand will only waist precious time. You want to submit your pre-approval letter at the same time you submit your offer. 

• Be reasonable. When it comes to requesting repairs, consider only requesting the Health, Life & Safety repairs. If the you and the Seller do not come in to an agreement on repairs they will put the home back on the market to get another offer, or contact the other buyers who had submitted an offer previously. Another buyer maybe willing to be more flexible.

Jump the minute the House hits the Market

Don't be that buyer who wants to wait until the weekend to view a home. In a seller's market you may not have until the weekend. By the time the weekend comes, the house may be already sold. Try to be one of the first showings, this is where you need to depend on your agents notification of fresh listings when they hit the market.  Try to view your emails before you go to bed so you're not scrambling to see them during your morning coffee or lunch break.

Its astonishing to know how many buyers are often unprepared. You must trust in your agent when they tell you "we need to move fast" because we know what we're talking about. We don't like to see our buyers miss out on their possible dream home. If you write a good offer, a fast offer and a clean offer, your chances of acceptance are far better than those of a buyer who is unprepared.

Source: http://homebuying.about.com/od/buyingahome/qt/Tips-For-Home-Buying-In-A-Sizzling-Hot-Sellers-Market.htm