Skip to nav Skip to content
  1. If you are likely to be impacted by Hurricane Erin, please get to safety. If you are impacted, please reach out to your FEMA representative for Disaster Assistance or file a flood insurance claim. Learn more on our Disaster Relief page. 

888-673-5521 Apply Sign In

Tips for Buying a Home in a Seller’s Market

Read Time: 4 Minutes Date Published: June 11, 2020

Imagine this: You’ve just walked through the front door of a beautiful home, newly listed for sale. The size is perfect, the neighborhood is ideal, and it’s within your price range. There’s just one problem – it’s filled with other potential buyers! They all seem to love it as much as you do, and by the end of the day, multiple offers prove this to be true.

Couple signing documents in new home

Believe it or not, this is what buying in a seller’s market can be like. These so-called “hot markets” are where housing inventory is low and prices are relatively high. And while these conditions are prime for sellers, they can make the process more challenging for homebuyers.

However, for many, buying a home in these markets is a battle worth fighting for – especially as rent prices continue to climb and interest rates remain near historic lows.

To navigate a seller’s market, you’ll need to beat out the competition. Fortunately, we’ve got some tips to help position yourself for success and find your perfect home.

Tip #1: Get Pre-Approved

Buying a home is a two-way transaction. As much as it may feel like it’s all about you, remember that there’s a lot at stake for the seller, too.

Here’s where Newrez can help! Getting pre-approved, or having your lender verify your ability to afford a home loan for a specific amount, lets the seller know you’re qualified—and motivated. It demonstrates financial security, giving the seller confidence that the sale will go smoothly with you as the buyer. The process is different than getting pre-qualified as pre-approval requires documentation and is not based on estimates.

Tip #2: Hire an Experienced Real Estate Agent

Hiring a real estate agent, especially one with experience, could give you a serious advantage when buying a home in a competitive market. Find a real estate agent who has a proven track record of winning offers, and who hears about listings as soon as they hit the market. In a seller’s market, things move quickly. Your agent should be on the frontlines, keeping you in the know at all times.

Tip #3: Act Fast

In a seller’s market, a listing today could be a memory tomorrow, which means you can’t always wait for that weekend showing. Try to be flexible and make yourself available for showings as listings become available.

After you’ve seen a home and you’re comfortable moving forward, consider submitting an offer on the spot. Sometimes agents will begin the negotiation process onsite with the buyers stationed outside. This way, the agent can modify the offer if needed to expedite the process.

Tip #4: Place a Fair Bid

No one wants to pay more than necessary for a new home. But you also don’t want to risk losing the right house by submitting a lowball offer. Work with your real estate agent and research comparable home sale prices in the area to determine an offer strategy. At the end of the day, you have to be comfortable paying what you offer.

Tip #5: Make an Attractive Offer

There are several techniques to help your offer stand out among others. Here are just a few:

  • If possible, consider putting down a larger deposit. It communicates to the seller that you’re serious about the transaction.
  • Reduce hassle for the seller by agreeing to terms that make their transition easier. For example, if there’s a swing set in the backyard they’d rather leave behind, let them! If it helps move the sale forward, it could be beneficial to remove it yourself.
  • Be flexible with the closing date to accommodate the seller’s schedule.

It all really comes down to demonstrating your seriousness and willingness to make the process easier for the seller.

Tip #6: Write a Personal Note to the Seller

Many people develop an emotional attachment to their home, and sometimes moving can be difficult for the seller. Show them that you’re both serious and emotionally invested in this sale by writing a personal letter to them. Tell them why you love the place and how you plan to take care of it. The seller may be glad to know their former property is in good hands, giving you some leverage in the situation.

Tip #7: Decide Where You Can Compromise

Everyone has an image of the perfect, move-in ready home. Although when you’re searching in a hot market, it may not be easy to find. Do some soul searching and consider what matters most to you in a new home. Is it the size? The style? The location?

Once you’ve figured out your must-haves, then consider making compromises on those less-important features.

Tip #8: Be Patient

You may encounter some stiff competition out there. Above all else, stay focused on your goal, and try to be patient. The right home is out there. Equip yourself with these tips and soon you’ll be the one packing moving boxes!

No matter what market you’re shopping in, let Newrez help you get into your dream home. Use our mortgage calculator to estimate how much home you could buy and get your mortgage process started.

Stay tuned to our articles for more helpful homebuying and mortgage tips.   

Learn more in our other educational series.

We’ve assembled a treasure trove of jargon-free information to demystify home-financing and arm you with valuable insights and actionable options.

Why Newrez?

Newrez believes the lending business shouldn't just be about home loans - it should be about homeowners. That's why our employees get to know our customer's real needs, through final closing, and beyond.

Industry leading loan options
Simple pre-qualifications and application processes
Loans for everyone, from seasoned investors to first-time buyers
Putting power back into underserved communities

Disclosures

By refinancing an existing loan, the total finance charges may be higher over the life of the loan.

††The rate on your existing mortgage will not change. The Newrez Home Equity Loan program requires borrower to obtain a second mortgage at current market rates. Loan amount based on underwriting guidelines. Minimum 660 credit score. Minimum and maximum loan amounts apply. Program financing only available on properties with one existing mortgage lien and subject to maximum loan-to-value ratio. Not available in all states or territories. Other terms and restrictions apply. Please contact us for more information.

^ This HELOC is an open-end line of credit, available on owner occupied properties, where 75% of the approved full credit limit (minus the origination fees) will be drawn at the time of closing. Additional draws may be available after a 90-day period within the first 3 years not to exceed the available credit limit. Actual rates available to you may vary based on several factors including your credit score and combined loan-to-value. Loan amounts range from $50,000 to $350,000. We may determine home value and resulting equity through independent data sources and automated valuation models. An appraisal may also be required. Only available for eligible borrowers and property types. Not all applicants will be approved, pre-approval is based on data you have provided and certain assumptions that must be verified and subject to underwriting approval. Not available in all states or territories. Contact Newrez for more information.

This is not a commitment to lend. All loan programs are subject to credit, underwriting, and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.