Realities You Must Face When You Buy A Knoxville Home In A Seller’s Market
Buying a home in a seller’s market is a bit different than buying a home in a buyer’s market.
In a seller’s market, there are more buyers than there are homes on the market, leaving sellers more in control. This is why buying a home in a seller’s market requires a different set of tactics in order to succeed.
Here are some realities you must face when you buy a Knoxville home in a seller’s market.
Be Prepared To Write A Full Price Offer
The days of being able to write a lowball offer are gone. In a seller’s market, there is a shortage of homes and too many buyers competing over those homes. When you finally find the right home, be prepared to write a full price offer.
Great homes don’t last in a seller’s market. Once you’ve found the right home, you should be prepared to write a full price offer, assuming that a home isn’t overpriced. Before writing an offer, have your realtor show you what has sold in the area and what is currently for sale. Based on that, you’ll be able to determine if a full priced offer is warranted.
Keep in mind, a majority of homes in a seller’s market are selling at or above list price. Don’t go in thinking that you’ll get lucky and find a steal. Seller’s markets are competitive.
Be Ready To Compete
You should be fully prepared to compete in seller’s market. Unlike the days where sellers were vying for a buyer’s attention, buyers are the ones vying for a seller’s attention. In a world full of buyers, you’re going to need to be prepared to stand out in a seller’s market.
You should never assume that you’re the only buyer vying for a particular house. You should always assume there may be another buying falling in love with the same house. This means that you should go in with your best offer from the very start.
Be Prepared To Miss Out
In a seller’s market, unless you’re particularly lucky, you’ll probably miss out on a couple of homes. Homes that you want to see will quickly go under contract before you’re able to see them. Or, you’ll write an offer on a home that you love only to have another offer picked. It can be hard to buy a home in a market climate like this. You may worry that you won’t find a home that meets your needs.
Instead of feeling defeated, it’s important that you learn from the experience. Did you miss out on a great home because you put off going to see the house? Next time, drop what you’re doing and see the house as soon as you’re able to. Did you write a low offer in hopes of feeling out what a seller was looking for? Next time, come with a better offer is the home for you.
Just know, things have a way of working out. Every buyer ends up finding the right home for them.
Be Prepared To Compromise
Finally, you should be prepared to compromise. In a seller’s market, sellers have more power than they did a couple years ago. So you’ll have to be willing to compromise when it comes to making an offer.
A real estate transaction is a two-way street. Both the buyer and seller work together to come to an agreement that works for both parties. Just keep in mind that seller’s do have more negotiating power than they did a couple years ago, so you may have compromise with the seller more than you would have a couple years ago.
Buying your first Knoxville home is an exciting and overwhelming experience. If you’re like most first-time buyers, you may not be sure where to start. If there is anything we can do to help you in your home search, please do not hesitate to contact us. We’ve helped countless homeowners buy their first home and we’d love to do the same for you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.