4 Tips you need to know when buying a home in a seller's market in 2022

Buying a home at any time can be stressful and overwhelming, however buying in a seller's market can be an emotional roller coaster. In a seller's market the experience of your Realtor matters.

You deserve an expert Realtor to help guide you through the process, providing advice and strategies to ensure you are successful in your home purchase.

First of all, what is a seller's market? In a seller’s market, there are more buyers than there are homes for sale. With fewer listings to choose from and more competition, homes typically sell quickly, often with multiple offers and selling over asking price. In a seller’s market, the seller has the upper hand.

If you have been watching the news in Ontario or British Columbia you know that the housing market has been a seller's market for a few years.

In Calgary we are just starting to experience a hot housing market in 2022. That's great news if you are a seller, however if you are a Calgary home buyer you are going to face additional challenges purchasing a home.

Tip 1. Have a Firm Pre-approval

First of all you want to make sure you have a firm pre-approval with your mortgage broker or bank. A firm pre-approval is different than a pre-qualification and a lot of times as a buyer you wouldn't know the difference, so having your trusted real estate expert guide look at your pre-approval to make sure it is indeed that is very important to get started.

Pre-approved mortgage is important when buying a home.

Pre-qualified means a lender has given you an approximate figure of what you can borrow, based on a few general questions about your income, debt and credit situation.

Pre-approval is a written confirmation indicating the mortgage amount you can afford, at a fixed interest rate, for a specific period of time (typically 90 – 120 days). It can help you take advantage of the best interest rates. Best to have a pre-approved mortgage before searching for a home to ensure that you are looking in your correct price point and you know what your monthly mortgage payments will be.

Tip 2. Narrow Down Your Search as Quickly as Possible

You can start a broad home search to figure out what neighborhoods you want to live in, the amenities and housing prices in those neighbourhoods, but you want narrow down your search as quickly as possible.

Narrow down home search .

Complete a must have and want list to help you narrow down where you want to live and the type of home that's right for you.

When searching too broadly, for too long, in different kinds of neighborhoods and price points you can sometimes miss what you're looking for with too many choices. Working to narrow it down as quickly as possible is the best next step.

Tip 3. Have Your Deposit Ready

In a buyer's or balanced market, the deposit is usually a fairly small percentage of your down payment and it is usually relevant to the purchase price, but in a seller's market a larger down payment becomes more important.

Have your deposit ready when buying a home.

The deposit is paid when you make an Offer to Purchase to show that you are a serious buyer. The deposit will form part of your down payment with the remainder owing at time of closing. If for some reason you back out of the deal without having covered yourself with purchase conditions, such as financing, home inspection, etc., your deposit may not be refundable and you may be sued for damages.

You want to have access to your down payment at the initial part of your search process so it's not tied into an investment or hard to access in case you need to put a larger amount down to make your offer look more attractive.

Tip 4. Hire an Expert Realtor You Trust

When buying a home you deserve to work with a trusted real estate expert. You need to make sure that that person understands the market you're working in, understands you and your situation because there are different tactics and strategies to writing in multiple offers.

Hire a trusted Calgary Realtor to help buy a home.

A seller's market can be very dynamic, so it's important to work with an experienced Realtor so you are successful in your home purchase.

Conclusion

We do not have a crystal ball to know where the Calgary housing market is headed in 2022. At the Marnie Campbell Real Estate Team we do know, however, that in a seller's market, there are certain strategies, a home buyer needs to know in order to have a successful home purchase. Make sure you are pre-approved, narrow down your home search as quickly as possible, have your deposit ready to go and work with a trusted Realtor so you can be expertly guided through the home buying process.


Find a Realtor in Calgary to buy a home. Contact Marnie Campbell Realty Team.

The Marnie Campbell Real Estate Team can help you make better real estate decisions, so you have no regrets buying a Calgary home.

Posted by Marnie Campbell on

Tags

Email Send a link to post via Email

Leave A Comment

e.g. yourwebsitename.com
Please note that your email address is kept private upon posting.