In a seller’s market, be prepared to move forward assertively

Q: I’m looking for a house to buy and everything I like is selling before I can write an offer on it. Or when I do write an offer, they accept someone else’s whose is higher. I was hoping to get a good deal on a house, but now I just want to find something I can actually buy. What do I do?

A: The greater Albuquerque area is definitely becoming a seller’s market (depending on the neighborhood). Gone are the days of taking a few days to think about a house. Gone are the days of thinking you’re going to get a lot off the asking price. There are exceptions, of course.

The best advice I can give is get in there quickly. If you really like a house, don’t take too long to “think about it.” Be as aggressive as you can without grossly over-paying. This will often mean paying above asking price. At the same time, it’s important to take into account your goals. If you want this house as an investment and don’t plan to be in it for very long, this might not be the time to buy. You might need to rent for a while, then buy a house when the market crashes. If you’re ready (or need) to buy a house now and don’t expect it to make money for you, or plan to be in it for many years, or fix it up, then go for it. But know you’ll have to be assertive and it might take awhile to get the right house and situation.

Finally, if you want a “good deal” and you want to buy now, you’ll likely need to look for houses that have been on the market for a while or are in disrepair. If you find something that has been on the market for a while, the sellers might be motivated to take an offer below their asking price. They also, however, might be on the market so long because they’re not being reasonable or realistic about the value of their house. If you find something that needs work and is priced well, you will also likely be met with competition from other buyers, but it can be worthwhile. You can fix up the house and gain value in the future.

All of that said, move forward knowing you’re buying in a seller’s market and therefore you’re likely “buying high.” You know the old adage, “Buy low. Sell high.” Well, sellers are getting to capitalize on that side of things, but, by definition, it means many buyers are not. Just make sure it’s the right choice for you, then move forward with a clear understanding of the market.