Buying a home? Learn what sellers are looking for!

Are you getting ready to buy a home this fall? The fall months are often fairly busy for real estate, and even though we had a red hot summer, the next few months are likely to be just as active, which means you’ll be buying a home in a seller’s market this season. This may seem like a stressful situation to be in, but there are some things you can do to be the most appealing buyer out there. Here are a few things sellers love to see from buyers, which might help you on your way to becoming a home owner!

Buyers with an agent

One of the most important things you can do is have a real estate agent on your side when you go house hunting. In a competitive market like this, many sellers won’t consider buyers without agents because it may look like you’re not taking it seriously. Sellers want to know you’ve done your research by selecting an agent, finding their home listing, and preparing an offer after thorough research. Basically, sellers want to know they can trust the person buying their home. 

Home owners also want to take the path of least resistance when selling. Someone buying a home without an agent may make the process more difficult for sellers, especially if they don’t know much about the process. If other buyers who have agents are making offers, sellers are far more likely to favour them, as the process will be much more seamless.

A competitive offer

Demand is down a bit, but we’re still in a seller’s market. With that in mind, it’s not a good idea to try tossing a low offer in the hopes of enticing a seller. Odds are, you won’t be the only buyer interested in a particular house. This means you don’t want your offer to be the lowest one, or you can be fairly certain you won’t be the next owner. It’s important to consult your real estate agent to see how much over asking you should offer — another great reason to use an agent! You shouldn’t promise sellers the moon if you can’t afford it, but your agent can help you decide what might be a realistic offer for you. Some people offer $100,000 over asking when buying a home, but you should see what other homes are selling for in the area to determine your offer. You want to balance being competitive with being smart!

Lack of conditions

Sometimes, buyers have conditions attached to purchasing a home. Common conditions include the need to get a mortgage approval, the need to sell their existing home first, or the need to review zoning laws in the area. Pretty much anything could be a condition, but be careful about putting these in your offer. The more conditions you have, the worse it looks to a seller. They might start to see you as difficult, or unsure of your offer, compared to other buyers with firm offers. Basically, sellers want buyers who were ready to commit yesterday. 

The one condition you should always include is a home inspection! Inspections are essential for buying a house. You need to ensure it’s up to standard, and that you won’t run into thousands of dollars in repairs down the line. It’s smart to buy a home on condition that it passes a home inspection to protect yourself as the buyer.

A larger down payment

Just like a smaller down payment often comes with higher interest rates, since lenders view you as a bigger potential risk, the same can be said for sellers. If you’re putting down a smaller down payment when buying a home, sellers might worry you won’t be as reliable, or you might have to pull out at the last second. If a seller can see you have a 20 per cent down payment, they are more likely to see you as a trustworthy, financially stable buyer. While this isn’t always fair, a first impression is a lasting one in a seller’s market. If you’re able to keep building your down payment before buying a home, it might work in your favour down the road. 

Organization

Finally, sellers don’t want the process to be any more complex than it needs to be. With that in mind, keep things simple for them by keeping everything organized on your end. This means having your down payment, pre-approval, proof of funds, and any other documents on hand and ready to go. When you find a home you like, be ready to make an offer right away. It’s frustrating for sellers to wait around for you, so show them you’re prepared. 

Buying a home in a seller’s market can be a tricky experience. There’s a lot of considerations to keep in mind, and you need to be careful about how you proceed with offers. These tips are a good way to start and get your bearings when you’re on the house hunt, but it’s also important to use the help of a mortgage broker to understand your options and the best path for you.

If you have any questions or are interested in buying a home, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.