Tips for Home buyers to Succeed in a Seller’s Market?June 21st, 2021 by Administrator
You put a lot on the line when you decide to purchase a house. Whether you’re new to the home buying process or not, it can get tricky to navigate the housing market – especially a seller’s market. According to statistics, Los Angeles is a seller’s market.
What is a Seller’s Market?
A seller’s market is when there are more buyers in the market than the houses listed for sale. A seller’s market generally results in rising home prices and makes the competition inflexible for the buyers.
However, even if the Los Angeles housing market is a seller’s market and the competition is fierce, you can still buy a house.
How Has the Pandemic Affected the Housing Market?
The pandemic affected the housing markets in several ways. Because of the shortage of available homes and the high number of buyers looking for a real estate property, it’s a seller’s market.
Although more homes are listed in 2021 than in 2020, the market still favors the seller. If you want to buy a house in LA county, a seller’s market, don’t let the market deter you.
Currently, the mortgage rates are low. So, take advantage of low rates before they rise up. If the economy improves, rates may increase slowly, but experts believe that borrowing costs will remain low by historical standards throughout 2021.
If you’re interested in buying a real estate property in LA county, here are a few tactics to follow when you are ready to make an offer.
Get Pre-Approved for a Home Loan
As a first-time home buyer, you should apply for a pre-approval on a mortgage. Applying for a mortgage after making an offer on a home indicates to sellers that you’re not as motivated to buy as others.
An underwritten pre-approval for a mortgage typically takes about 24 hours and is recommended if you’re looking to buy and want to stay competitive in a seller’s market.
Work with an Experienced Real-Estate Agent
The home buying process is stressful and overwhelming. Having a real estate broker by your side throughout the process can help make everything smoother and aid you in making an offer faster when the time is right. It is particularly true if you are new to the area or moving to a larger housing market like Los Angeles.
Your broker can provide insights into specific neighborhoods, such as schools, walkability, and other local amenities. They will also help you make an offer since they are updated with the local real estate market and will use the knowledge to negotiate on your behalf.
Make an Offer in Cash
For any seller, an all-cash offer is an attractive deal and can lead to a likelihood of you getting the house. When you pay in cash, the sale happens quickly, and the entire transaction goes smoothly. Of course, not all can afford an all-cash offer and need to depend on other tactics.
Add an Escalation Clause
An escalation clause gives you the opportunity to be the highest bidder. The clause states that if the seller receives another offer, which is higher than your initial bid, you are willing to increase the offer to a higher price.
Wait for the Hosing Market to Calm Down
You need to follow this tactic if every other one fails. Seller’s markets can be challenging if you’re new to home buying. However, holding off isn’t always a bad idea if there are realistic projections for lower real estate prices.
Real estate markets are cyclic. If you struggle to buy a home now, months’ pause could mean you’ll be searching in a completely different real estate market. However, better talk to your real estate broker before deciding to wait for the housing market to calm down.
Purchasing a home can be difficult in Los Angeles, especially if it’s a seller’s market, which it is now. Use any of these tips or work with a reliable real estate agent to stand out from the competition to help you buy your next home.