How to Buy a Condo in a Competitive Seller’s Market

Are you planning to buy a condo this spring? Well, you’re in for a rough ride, as you will not just have to look for houses or condos for sale that meet your preferences, but also beat out all potential homebuyers who also want to make an offer on the property of your choice.

Affordable homes in great condition generally move quickly and always have many offers. Therefore, if you want to get your preferred home of your choice that’s within your budget, you need to know the strategies to buying a condo or house in tight Seller’s Market. So if you’re tactic just involves nonchalantly walking in a couple of open houses or browsing online listings, do not expect to find the condo of your dreams.

One of the keys to getting the condo you desire is to get a good real estate agent who expertly knows the ins and outs of negotiating in the industry. Condo sellers usually don’t negotiate much if there’s a list of other offers. Another thing, you typically wouldn’t need to pay the agent if you’re the buyer because the seller gives him or her commission.

Nowadays, prospective buyers go to agents and present a list of homes they would like to take a look at based on their online research. While this may be a good start, an experienced real estate agent may include additional options that you may have missed. Some skilled agents can even gauge beyond the buyer’s preferences and add other houses or condos to their line-up.  While it’s true that everything is negotiable in real estate, finding out the motivations of the seller is also another plus in securing a winning offer. Aside from these, here are some tried and tested tips on how to buy a condo in a tight seller’s market.

  1. Check your financial status. A few months before planning to go on a house hunt, make sure to get copies of your personal credit reports to check if you’re finances are enough to buy a condo or house. Also, look around for mortgage financing. Most agents prefer that they clients have a proof of funds or preapproval letter they can present to the sellers.
  2. Move fast. Once you find a house in the listings that you loved at first sight and which suits your budget, go to the open house. Check if it’s what it appears to be and if you’re content, write an offer immediately because in real estate, houses can go in a matter of hours.
  3. Ocular Inspection is Important. Avoid making impulsive judgement based only on photos in the listing. There are houses that do not look good in photos but are better in person. Pictures often don’t tell the whole story when it comes to real estate.

Most sellers don’t care about repairs once they see that the market is competitive. Although, you can haggle with some sellers to lower the offer if upon inspection, expensive defects were revealed.  Because you’re not buying a new condo or house, you have to scrutinize and look for possible major house defects in your inspection. This way, you’ll avoid paying for the repairs after you’ve made a deal.

  1. Offer your best bet. If you have competition, you cannot bargain. Go with your highest bid and other offers such as your financing package, closing date, and contingencies.
  2. Give a large deposit. An earnest amount of deposit will make sellers believe that you’re serious and capable of paying for the house.