TIPS to Purchase your dream home in a SELLERS MARKET in Halifax
What exactly is a seller’s market? I know when I kept hearing this, all I knew is that it was good for a seller but quite did not understand the jargon.
A seller’s market essentially is when we have more buyers than there are homes to purchase. Currently in Halifax, the inventory has been its lowest in over a decade. With supply in demand we are seeing more and more competing offers.
There are several reasons for our growth as a seller’s market in the Halifax.
- Many are keeping their homes and refinancing for renovations
- Some have kept their homes and are turning them into Air BnBs
- Seller’s fatigue from years ago when trying to sell, may be still a concern, causing them not wanting to list as their home was on the market for more than 6 months in the past.
- With low inventory sellers do not want to take the risk of having no where to live.
- The city has been slow issuing permits for new construction.
- The bank has made it more difficult for builders to get financed.
The above are the ingredients for the perfect storm that has led to many successful sales.
So, as a buyer what can you do to get a home in this market?
- Have your agent scout online with others in the industry to see if the have “pocket listings” of homes waiting to come on the market.
- If you find yourself in competing offers, you will need to place a bid above asking.
- Have your mortgage preapproved with your broker before submitting an offer.
- Have your current home under contract with an offer.
At the end of the day, a good strategy is to have a plan B. No ones wants to purchase a home just for the sake of purchasing a home. You may find yourself having to rent.
One other strategy I have used was to have my sellers purchase new construction. Most times the build is 7 months out. 2 months before completion, I plan to list their homes, so it is a seamless transaction, with just the one move.
If you are thinking of selling or buying, I would love to help.
Halifax Real Estate