A sellers’ market, in simple terms, means the demand for homes is greater than the supply. A scarce supply of properties on the market creates a high demand, therefore giving sellers an upper hand and the ability to dictate the prices. In most instances, buyers will be happy to pay a higher price just in order to secure the home they want. Due to the high competition for properties, you can expect to see many buyers competing for the same house. This can lead to bidding wars or being gazumped. Whereas in a buyers’ market, there are more homes than buyers which gives the buyer more power to determine the price.
Our top tips for buyers in a sellers’ market:
- Move swiftly. The quicker you take decisive action and make decisions (without naively rushing in, of course) the fewer other buyers will get to see the property. Book that viewing as soon as you can…
- Work positively with the agent. They are bound to act in the best interests of the seller but they also have a duty of care to the buyer. A great relationship with the agent is very helpful in having your case put forward positively to a seller.
- Be honest. Estate agents don’t always have the best reputation for honesty but, in reality, they’re often told things by clients that aren’t 100% true. Telling them anything other than the truth is likely to come back on you, so transparency from the start is by far the best policy.
- Don’t put in an offer that is too low under the asking price as the chances of securing that home would not be in your favour.
- If the seller has an emotional attachment to their home they will likely want to sell to someone who will love and care for it as much as they did. Voice how much you love the property to the seller but don’t overdo it!
- Ensure all of your documentation and mortgage approval in principle is completed before putting in an offer. This shows a seller and the agent that you have taken the financial commitment seriously and have not offered on a property over and above what you have been provisionally approved to borrow.
- Most importantly don’t let your frustrations of the whole process get to you. Stay strong and keep positive. Even if you don’t win the bidding war and get that home, there will be many more properties that will come to market, it may just take a little longer than you’d hoped.
Take a look at the properties we’re currently marketing for sale.