July 29, 2020

Buying in a Seller's Market

With interest rates at all-time lows, home affordability is as good as it gets. Even in a seller's market it is a GREAT time to buy. Here's what you need to know when buying a home in a seller's market.

What is a sellers’ market?

We call it a seller’s market when demand exceeds inventory. Homes generally sell quickly and at a premium, there are fewer properties to choose from and less opportunity to negotiate price and concessions.

Are there benefits for buyers in a seller’s market?

The benefits of a seller’s market are not as obvious, but they are significant.

  • Home values rise quickly in a seller’s market
  • Equity growth is accelerated and starts immediately
  • High demand for homes indicates a growing local economy

The long-term benefits of living in a strong local economy will far outweigh the potential costs of buying in a seller’s market. Not only will the newly purchased home increase in value more quickly, but local tax revenues will increase as property values increase. This means your new community can invest in better roads, schools and infrastructure. The local job market is likely to be more stable in a growing economy and increased consumer spending will attract new business and entertainment venues to the area.

Can I still get a good deal in a seller’s market?

Buyers who approach a seller’s market with realistic expectations have much more success getting a home they will love at a fair price. An informed home shopper working with a good realtor and a respected lender will have much less trouble getting an offer accepted.

  • Plan to spend more time shopping
  • Talk to your realtor about your must have and nice-to-have features
  • Know what you can afford
  • Be prepared to act fast
  • Make a competitive and well-qualified offer

In any market, it is important to start with a reliable pre-qualification from a well-known and experienced lending team like the Boles Group at Bay Equity Home Loans. Your Boles Group loan officer can help you determine your budget and recommend a quality local realtor who will find the perfect home and negotiate the best possible price regardless of market conditions.

###

Bay Equity Home Loans – Boles Group is a team of lending professionals located in Gilbert, Arizona and licensed to originate home loans for purchase or refinance in nine states (AZ, CA, CO, ID, MN, NM, NV, OR, WA). Boles Group lending professionals have the knowledge and experience to create solutions where other lenders create problems. The team prides itself on responsive, accurate communication and is highly regarded by clients and business associates alike.