When the market is full of buyers and there are not enough properties for every buyer, it is a seller’s market. This means that sellers can be picky about who buys their properties. It is not the best market for buyers.
Part of the atmosphere in a seller’s market is buying quickly, which sometimes means removing conditions from contracts and paying well over the asking price. Home Buying Institute explains that when approaching a seller’s market, you should have a game plan in place or you may be left behind.
Expect fast sales
You cannot waste time in this type of market. If you see something you like, you must act quickly. Make an offer as soon as you know you have a property you like.
Expect to pay more
When you make an offer, do not try to negotiate. Give your best offer right upfront. If someone else makes an offer and outbids you, then you probably lose the property. You should go all in or risk losing out.
Expect small inventories
You may have to make a lot of compromises when it comes to what you want. The market will not have a lot of properties. You may not be able to find the exact property you want. You may also have trouble finding property in the specific area you want, especially if it is a hot market.
Since location is everything in commercial real estate, be willing to look in cities and locations you may not have otherwise considered. This might be the best time to tap into markets that have not yet seen a lot of commercial development but are still good for such uses.