How a Real Estate Agent Can Help Home Buyers in a Seller's Market
For home buyers trying to purchase real estate in a seller’s market, the guidance and assistance of an experienced real estate agent can be invaluable. The real estate market is affected by changes in the overall economy as well as local factors which can also impact the real estate market. When it is a seller’s market, however, locating the right property and negotiating an advantageous sale is usually harder for a prospective buyer. If you find yourself in a seller’s market, a knowledgeable real estate agent can offer assistance in a number of situations, including the following:
- Low Inventory of Homes for Sale– In a seller’s market, one of the biggest hurdles for a prospective buyer of real estate is finding enough properties to look at due to the low inventory. The basic concepts involved in supply and demand are part of the definition of a seller’s market. When supply is low and demand is high, sellers have the advantage. Therefore, in a seller’s market a buyer often has fewer options to choose from when purchasing property. This is where a real estate agent will come in handy because he or she will have access to numerous sources that list properties for sale, such as the Multiple Listing Services, or MLS. The moment a property goes on the market, your real estate agent will know about it, giving you the upper hand.
- High Home Prices – not surprisingly, home prices tend to go up in a seller’s market. This does not mean, however, that a buyer should overpay for a home. Your real estate agent will know what a home is truly worth and (if he or she is a buyer's agent) will have a fiduciary duty to make sure that you are not taken advantage of by a seller who is trying to capitalize on a temporary spike in listing prices.
- Bidding Wars – purchasing real estate all comes down to the negotiation over the sale. In a seller’s market, bidding wars often ensue when more than one potential buyer wants a home. During a bidding war, decisions often need to be made in a short period of time as offers and counter-offers fly back and forth. Having an experienced real estate agent by your side can be the difference between winning the bidding war or walking away empty handed.
Often, a buyer doesn't have much experience in locating and purchasing real estate in a seller’s market; however, a real estate agent has a better understanding of a seller’s market. Your real estate agent can offer numerous tips such as making sure your financing is pre-approved so you are ready to act when you find the right property. He or she will also be likely help you determine what conditions you can include or exclude in an offer if a bidding war begins. For example, maybe a quick closing and possession will sway the seller or perhaps they have time to spare and would rather accept a higher sales price. The benefit of using a ZipRealty agent, is that our agents will work closely with their clients throughout this entire process. ZipRealty provides its real estate agents with a powerful tools to help engage their clients. By utilizing ZAP, an industry leading CRM, ZipRealty agents are better able to connect and communicate with their clients. Also, ZipRealty agents can easily access accurate and timely real estate market data using ZAP and deliver the kind of proactive service that home buyers appreciate.
Seller’s market may make finding and purchasing the right property challenging, but it is far from impossible. With a the help of a qualified real estate agent, a buyer can still walk away with the home of her dreams without breaking the bank.