Dealing with a seller’s market can be overwhelming to Nashville buyers who have not purchased a house before. There are fewer homes for sale, seller’s know they have many interested Nashville buyers, and buyers are fighting against each other for the perfect house. While it may seem impossible to buy during a seller’s market there are five ways Nashville buyers can still win the house of their dreams.
Too many Nashville buyers think they need to start by finding the perfect house before talking to the bank. By the time the house is found it is too late to get approved by a lender if trying to purchase in a seller’s market. There will be too many Nashville buyers who want that house for the sellers to wait on one buyer who has not gotten approved for a mortgage.
The buyer has to talk to the bank first and get pre-approved. Nashville buyers need to provide all of the financial information required to the bank and allow them to review it.
Once they have they will make an offer of how much they would cover for the costs of a home and even estimate an interest rate. Proving that a mortgage is underway to a seller is going to be necessary.
Nashville sellers do not want to work with difficult buyers. Some sellers need to close quickly while others are trying to find a new home and want a date further out. Accommodating the seller in terms of when they would like to close makes Nashville buyers much more appealing. Even if the offer is not the best one on the table, being flexible always makes the situation easier.
To make a seller take notice of a buyer, they should use their earnest money. Offering more earnest money than is necessary will show the seller that the buyer is dedicated to making a purchase. Usually, Nashville buyers will need one to five percent of the purchase price of the home in earnest money which will be paid towards the down payment of the home at closing.
In a seller’s market, there is rarely a chance to counteroffer. Most Nashville buyers will make one offer and if it is not the best one compared to other buyers it will be rejected. This is why those Nashville buyers that want to be successful should make their highest offer with the best terms the first time.
Competing with other Nashville buyers is not fun and it can be very tiring if the buyer has to review every little change. Using an escalation clause gives you the ability to continuing making higher offers if there is another buyer who is making an offer that is higher.
Trying to win in a bidding war in a seller’s market is a stressful experience for Nashville buyers. Every buyer is fighting against each other in an attempt to win over the seller. Making the best offer up front, using an escalation clause, and having a higher earnest money deposit can be helpful.