Financial Friday: Helping Home Buyers Be Successful in a Seller’s Market

Published: Aug. 31, 2021 at 7:48 AM CDT
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HUNTSVILLE, Ala. (WAFF) - The Wall Street Journal named the Rocket City as the 10th best emerging housing market in the nation. It’s great news for this area, but it’s also creating problems for homebuyers. It’s a seller’s market when inventory is low and demand is high. Today, some homes are only on the market for a few hours with competitive bidding.

So how can you – the buyer – make sure to get the best house and the best deal even during a seller’s market?

Todd Howard, the president of Redstone Family Realty LLC shared these tips:

  • Get pre-approved: This lets you know how much home you can afford and lets the sellers know that you are credible.
  • Choose a sharp real estate agent.: Your agent should know the market well and responds quickly to any circumstance. You want the best people on your team when you trying to win!
  • Make your best offer first: Come in strong and forget about counteroffers, there won’t be any. The seller has multiple offers on the table and won’t need to haggle with you.
  • Be ready to bid: In some cases adding an escalation clause of 2-3% more than the highest bid has been necessary…even in the North Alabama area.
  • Offer non-price incentives to the sellers: Give the seller extra time to move out if you can. Put down a larger amount of earnest money. Forget about conditions or contingency clauses.
  • Bottom Line: The market is hot, but don’t be pressured to buy something you can’t afford or something you don’t love. Remember that a home decision has a long-term impact on your financial future.

For more ways to save and financial advice be sure to tune in at noon every Friday for WAFF 48′s “Financial Friday” segment.

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