Buying a Home in a Seller's Market: 3 tips for Success in Eastern Lansing

Are you looking into buying a home, hearing all of the horror stories about it being a seller’s market, and getting nervous that you won’t be able to get the home of your dreams? Well, I am going to give you three pieces of advice to prepare you for your journey and make you a more informed, confident buyer. Read until the end to gain advice on a valuable strategy which most buyers are not aware of in Central Michigan.

My first tip is to get comfortable with losing. In a seller’s market, you are competing against a lot of other buyers. Inventory is low and the same houses that you love will attract other buyers. If you are anything like me, you walk through a home and envision the life you would have there if you owned it. But the reality is this: In this market, it is more likely that your offer will not be accepted than that it will be accepted. So don’t mentally arrange your furniture in your home or flag items for purchase on Wayfair that would be perfect for it yet! But do operate with confidence knowing that you will find a home – it just might not be this one.

And this takes me to my next point, and something that is incredibly important: Make the best offer that you are comfortable losing the house for. Let me say that again: Make THE BEST offer that you are comfortable LOSING the house for. This isn’t the type of market in which you are going to low-ball a buyer and hope that they take your offer. This also isn’t a market where you are necessarily even going to get the chance to make a counteroffer later on. So make the type of offer out of the gate that is your highest and best so that, if you lose it, you will know that it wasn’t meant to be and can feel bad for the buyer who paid more than YOUR OFFER and actually got it.

And my final recommendation isn’t necessarily going to be something you have heard of previously: Be open to making offers as an Active Backup. But what does this mean? That means that there is already an accepted offer on the home, however, if the offer falls through, and you are the single Active Backup, your offer would in turn become the primary offer and the purchase process would move forward with you as the buyer. This doesn’t necessarily lock you into buying the home if, in the meantime, you make an offer on another home and it is accepted – if it is written up in the purchase agreement that way by your real estate agent, of course. This COULD also mean forfeiting or delaying return of your earnest money deposit, so you must be comfortable with that scenario if you take this route.

That concludes my top tips for you on buying a home in a seller’s market. Please meet with a real estate agent to hear more valuable advice on making offers in the current environment. Happy house hunting!

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