Buying smart in a seller’s market

playing cards in a seller's real estate market

Homebuyer beware: it’s a seller’s market in the Lake Region. You’ve got to shop smart or someone else could end up owning your dream home. Throughout 2017 and the first quarter of 2018, single family homes and condominiums in Laconia, Gilford, Meredith and Moultonborough, New Hampshire sold at the fastest median pace in over a decade.

This seller’s market pace is fueled by low inventory. For example, during the first quarter of 2018 Laconia and Gilford had the lowest supply of homes for sale since at least 2007.

So if you’re a homeowner looking to maximize the return on your property investment, it’s a great time to sell because home values are peaking, buyers are more plentiful than home inventory, and there are relatively few competing properties.

But what if you are a prospective home buyer? Here are a few tips to help you be a smart, competitive buyer in a seller’s market:

Get preapproved—If you’re not a cash buyer, you should prioritize getting preapproved for financing before taking any further steps.

Preapproval will help you establish a realistic buying budget that considers all of your housing expenses and ensures you’re shopping in the appropriate price point. Preapproval will also help you determine four very important things: what type of financing you qualify for, how much interest it will cost, how much money you’ll have to put down, and how long it should take to “close” once the seller accepts your offer.

Preapproval is always a good idea for homebuyers planning to finance, but it’s especially important during a seller’s market because attractive homes and good values can sell very quickly and it can be heartbreaking to miss out on the home that you really want because another buyer is preapproved and you’re not.

The bottom line is that sellers take preapproved buyers more seriously. Preapproval sends a signal that you’re serious, prepared and qualified. Meet with a lender, get preapproved and share a copy of your preapproval letter with your agent, who can then add it to your offer submission. If you are a cash buyer, talk to your agent about submitting proof of funds with your offer.

Keep a poker face—It’s super exciting to finally find the home you’ve been searching for. But don’t let the listing agent see your desire and excitement when you find the home of your dreams.

A good Realtor® pays as much attention to people as much as they do to property. The listing agent’s job is to broker the best deal they can for the seller. When the listing agent senses that a prospective buyer loves the home and wants it so bad (maybe because the buyer blurted out something like, “Oh, I just love it and want it so bad!”), it sends a demand signal that can compromise the buyer’s future negotiation position.

A smart buyer keeps a poker face during showings and open houses. Even if your heart is racing, wait until you’re safely out of sight and earshot to do the I-just-found-the-home-of-my-dreams happy dance in front of your Realtor®. Then ask your agent to prepare an offer as quickly as possible, before someone else does.

Use contingencies to act quickly and with confidence—Buying a home is a big decision and, as much as you may want the home, it can be nerve wracking to actually commit. But in a seller’s market buyers are competing with other buyers and so quick action is essential.

Ask your Realtor® about contingency agreements, which are predefined conditions that must be met in order for a home sale to be completed. If agreed contingencies are not satisfied prior to closing the sale can be cancelled and deposited funds will be returned to the buyer.

Contingency agreements give buyers a chance to do two things once an offer is accepted. First, the listing will move from “Active” to “Active Under Contract” in the MLS, giving you some time (14 days is common) to breath, think, process, pray and do the due diligence (for example, have the home professionally inspected) that will help you be confident as a homebuyer. The effect is clearly that of “first right of refusal.” Backup offers may be accepted by the seller, but a signed Purchase and Sale Agreement puts the buyer in control for a time, even in a seller’s market.

The most common residential contingency clauses give buyers the option to withdraw an offer if the property appraises for less than the agreed-upon purchase price, or if the home inspection results are not satisfactory to the buyer for any reason.

On a related note, while buyers should use proper contingencies to protect themselves, it is important to not insist on too many contingencies when submitting an offer during a seller’s market, as this can generate fear in the seller that they are wasting time on an offer that will never close, and possibly missing out on other opportunities as a result.

Write a letter—Finally, you may consider adding a personal note to the seller in your offer package. I’ve seen two recent examples that helped put the buyer’s offer over the top. The first, written by a single mother and aspiring first-time homeowner, focused on her immediate emotional connection to the home, and how she looked forward to having a new generation of family members establish loving memories and milestones in there. The second example, which was written by a male client with a highly technical background, focused more on his admiration for what the current owners had done to improve the home structurally and aesthetically. Sellers can find such personal letters endearing and influential when considering multiple offers.

In a seller’s market you’ve got to shop smart, be prepared and act fast before someone else snaps up your dream home. Smart buyers can take advantage of preapproval, a stoic poker face, contingency agreements and personal letters to be competitive in a seller’s market.

Brent Metzger is a saleBrent Metzger, Realtor at Roche Realty Group in Meredith NHs associate at Roche Realty Group in Meredith, NH.  He can be reached on his cell phone at (603) 229-8322, at the office at (603) 279-7046, or by e-mail: brent@rocherealty.com

Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Marketing

How Marketing Real Estate Has Evolved

Back in the year 2000, the world was at the beginning stages of a major …

Read More →
Mount Washington, New Hampshire

New Hampshire — 30 Reasons to Move Here!

With lakes, beaches, mountains, forests, rivers, and the ocean for people who enjoy the outdoors, …

Read More →
New Hampshire Ski Resort

Ski Resorts in New Hampshire Are Ready for Spring Skiing!

It’s been a good week, and mother nature hit our region with a blanket of …

Read More →
Market Trends

Real Estate Market Trends to Follow

I’ve been pulling up some current research on the real estate market on a national, …

Read More →
Carol Mattice

Roche Realty Group Welcomes Carol Mattice

Meredith — Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2022

Laconia— Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, recently announced …

Read More →
Lisa Lewis

Lisa Lewis Joins Roche Realty Group

Meredith — Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and …

Read More →
Wanda Keenan

Wanda Keenan Joins Roche Realty Group

Meredith— Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, …

Read More →
Land for sale

Buy Land in New Hampshire — They’re Not Making it Anymore

The science is in and the more trees a state has, the happier and less …

Read More →
The Price of Real Estate

Did The Price of Real Estate Increase in Your Town?

Everyone’s always interested to see how their real estate values have performed over the past …

Read More →
Laid off employee in recession

Are We Headed into a Recession?

It’s pretty big news lately; Microsoft, Amazon, and other tech companies have laid off more …

Read More →
Price Reduced

2022 vs. 2021 — Is The Lakes Region’s Frenzied Market Over?

It’s that time of year to provide all of you with an update on real …

Read More →
Roche Realty Meredith

Roche Realty Group Reports a Record of $181 Million in Sales

               Meredith- Frank Roche, President of Roche Realty Group, Inc, …

Read More →
Hillside Inn Winter

12 Things To Get You Through The Winter Months

On December 21st, the winter solstice marked the start of when days will begin to …

Read More →
Housing Inventory Lacking - Lake Winnisquam, NH

Lake Winnisquam, NH’s 4th Largest Lake is in Strong Demand

There are literally 273 lakes, ponds and rivers to enjoy in New Hampshire’s Lakes Region. …

Read More →
Interest Rates

Will We Ever See 1980s Interest Rates?

I was with a Realtor® friend of mine this past week, and we discussed what …

Read More →
Hikers overlooking the lake in New Hampshire, voted "Best State to Live in America" in 2020.

Squam Lake — a Lakes Region Treasure

This past summer, I was invited for lunch and a nice boat ride around Squam …

Read More →
Shop Local New Hampshire

Small Business Saturday in New Hampshire!

We have many things to be thankful for here in New Hampshire, plenty of natural …

Read More →
Couple downsizing to smaller home

Does Downsizing Your Home in Lakes Region Make Sense?

There are many things to consider when planning to sell your home to downsize into …

Read More →
Newfound Lake, New Hampshire

Newfound Lake is the 8th clearest lake in US

Newfound Lake is the 8th clearest lake in the United States New Hampshire has a …

Read More →
Echo Lake New Hampshire

New Hampshire Rankings are Impressive!

New Hampshire has always been fortunate to land in many of the country’s top 10 …

Read More →
Lakeside at Paugus Bay

Impressive New Construction in the Lakes Region

For new construction sales in New Hampshire’s Lakes Region, 2022 has shown very impressive results. …

Read More →
Inflation and housing prices

How Inflation Impacts Lakes Region Housing Prices

I was out with a friend this week on Squam Lake, and we were talking …

Read More →
Picture of author in the Grand Canyon

Is Lake Region Real Estate Drying Up Like The Southwest?

I just returned from a trip to Nevada, Arizona, and Utah this past week. Put …

Read More →
Brook Hill at Meredith: New luxury homes in Meredith, NH

Brisk Sales at Brook Hill in Meredith

Meredith— Sales at Brook Hill, a new luxury townhouse community in Meredith, have been exceptional …

Read More →

Impressive Sales at Lakeside at Paugus Bay

Laconia— Sales at Lakeside at Paugus Bay, a new luxury waterfront condominium community on Lake …

Read More →

Four Decades of Change in Lakes Region Real Estate

We were talking in the office the other day regarding how much the real estate …

Read More →
Supply and demand graph, real estate housing

The driving forces in the demand for NH housing

It is no secret that our country has seen some incredible growth in the real …

Read More →
Holderness, NH

Holderness Bridges Big Squam and Little Squam

Holderness is a lakeside community in the foothills of the white mountains on New Hampshire’s …

Read More →
high inflation

Energy & Ukraine Crisis Compared to 1970s Inflation

Russia’s invasion of Ukraine has emerged as a black swan event rattling the world during …

Read More →
Tilton, NH

Tilton — The Gateway to New Hampshire’s Lakes Region

Tilton, New Hampshire, is considered the gateway to New Hampshire’s beautiful Lakes Region because of …

Read More →
Map of USA: How Real Estate Trends affect the Lakes Region

How Real Estate Trends Affect the Lakes Region

New Hampshire’s Lakes Region & New Hampshire Can you believe a new analysis from Zillow …

Read More →
Laconia NH

Laconia, NH — A City on the Rise

The 17,000 resident “City on the Lakes” is nestled on the shores of three of …

Read More →
Two ice sailing enthusiasts on Lake Winnipesaukee.

Waterfront Sales Activity and Real Estate News

Here’s an update on the waterfront sales activity that we experienced over the past two …

Read More →
Tuftonboro, NH

Tuftonboro — “The Diamond in The Heart of New Hampshire”

Located just west of Wolfeboro, Tuftonboro is called “The Diamond in the Heart of New …

Read More →
Aerial view of Lake Winnisquam and Sanbornton, New Hampshire

The Rural Character of Sanbornton, New Hampshire

Sanbornton embodies all that one expects to find in an old New England town. This …

Read More →
Castle in The Clouds is one of Moultonborough's largest attractions.

Moultonborough’s 66 Miles of Shorefront Captivates

By landmass Moultonborough, NH is the largest lakefront community in the Lakes Region with 59.7 …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2021

Laconia— Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, recently …

Read More →
Wolfeboro, NH — The Oldest Summer Resort Town In America

Wolfeboro, NH — The Oldest Summer Resort Town In America

Wolfeboro: a Brief History Nestled in the foothills of the White Mountains and on the …

Read More →

Roche Realty Group Reports Record of $170 Million in Sales

Meredith- Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and Laconia, has …

Read More →
Meredith NH

Gilford and Meredith NH – How Do They Compare?

There are 25 towns and cities comprising the Lakes Region. This week I thought I …

Read More →

EM Heath, LLC Acquires 1084 Union Ave in Laconia

The future of Ace Hardware EM Heath LLC in Laconia became solidified this past week …

Read More →
Roche Realty Group Sells Landmark Commercial Building in Gilford, NH

Roche Realty Group Sells Landmark Gilford Commercial Building

Gilford- One of the most visible, historic landmark commercial properties in New Hampshire’s Lakes Region …

Read More →
New Commercial Constructioin in Lakes Region

Commercial Sales Increasing in the Lakes Region

Recently I’ve been outlining the sales activity for residential, waterfront, and multi-family apartments in the …

Read More →
Laconia NH Commercial Building Sale

New Owner for 8,447 Sqft. Commercial Building in Laconia

Laconia— Exciting news for the downtown Laconia district. Another substantial commercial building, including approximately 8,447 …

Read More →

Strong Demand for Multi-Family Apartments in NH’s Lakes Region

Last week I was driving through Loudon Road in Concord in the busy heights area, …

Read More →
NH Lake

Area Lakes Show Considerable Appreciation

Below you will find data and insight into what’s happening in sales activity on 8 …

Read More →
inflation in shopping center / grocery store

More Inflation Concerns

More Inflation Concerns I submitted an article a while ago titled “Is Our Current Inflation …

Read More →
Alpenrose Village Retail Center located at Rte. 11 B / Rte. 3 in Weirs Beach, Laconia

Roche Realty Group Sells Alpenrose Village Retail Center

Laconia, NH – Tom Drouin of Roche Realty Group in Meredith represented both the seller and the …

Read More →
As the Real Estate Season Turns

As the Real Estate Season Turns

“There’s hope for buyers on the horizon, with more real estate opportunity to come.” This …

Read More →

Leave a Comment