What is a common measure buyers take in a seller's market?

In a seller's market, where demand for properties exceeds supply, a common measure that buyers should take is obtaining pre-approvals for financing. This step is crucial because it provides buyers with a clear understanding of their budget and demonstrates to sellers that they are serious and capable of proceeding with a purchase. A pre-approval shows that a buyer has undergone an evaluation of their financial situation and is ready for the competitive nature of a seller’s market.

With many buyers vying for a limited number of properties, being pre-approved can make an offer more attractive to sellers, as it significantly reduces the risk of financing falling through. Sellers are more likely to favor offers from buyers who have shown they can secure the necessary financing, thereby increasing the chances of a successful purchase.

Other options may not align with effective strategies in a seller's market. Making low offer bids is generally ineffective, as homes are often sold above asking price due to high demand. Only looking at properties online may limit opportunities, as many sellers may not list their properties online or may attract offers quickly. Waiting until market prices decrease is impractical in a seller's market, as prices are typically trending upwards when demand is high.