How to Buy a Home in a Sellers Market?

Buying a house in a seller’s market can feel overwhelming and intimidating. The limited inventory means buyers often enter bidding wars and try to make offers above the listing price when they can. However, you don’t have to put your buying plans on hold just because you live in a seller’s market. There are multiple strategies available to find quality homes and make offers that stand out. 

Many housing markets across the United States continue to favor sellers in 2025, and one factor has to do with interest rates. Nearly 60% of current homeowners are locked in at interest rates below four percent, and they don’t want to move to take on higher monthly payments.

This means housing inventory is still lower than it could be, allowing current sellers to control more of the market. With the median home price around $416,900, buyers are searching for good deals on quality homes that fit their price ranges.

Use this guide to learn how to buy a home in a seller’s market. Whether you are facing low inventory from national interest rates or moving to a high-demand area, you can still find your next home and move to a neighborhood you love.

Is It a Buyer’s Market or Seller’s Market?

The first step is to determine how competitive the current housing market is by evaluating inventory levels. Here’s what you need to know about the different types of markets. 

• Seller’s Market: The demand for homes exceeds the supply. There is typically fewer than five months of inventory available. 
• Buyer’s Market: The supply of houses exceeds demand. There is typically more than seven months of inventory available. 
• Balanced Market: Neither buyers nor sellers have a significant advantage. There is between five and seven months of inventory available. 

You don’t have to be an expert in housing inventory to learn whether you are entering a buyer’s market or seller’s market. Another option is to look at the current houses for sale to consider what demand looks like in your area. Here are a few seller’s market indicators to look for. 

• Homes sell quickly: it’s common in a seller’s market for homes to go under contract within a few weeks, less than 30 days on average. 
• Multiple offers are common: Buyers might have to enter bidding wars to compete with each other for desirable properties. 
• The sale prices are at or above the listing prices: This shows that buyers are unable to negotiate against sellers, and might even enter bidding wars to stay competitive. 
• Buyers have fewer choices: When homes sell fast, inventory stays low. 
• Buyers aren’t asking for concessions: To make their offers stand out, buyers will often ask for fewer things and include fewer contingencies that sellers would otherwise have to agree to. 

Every market is different and can experience unique demand levels. Some markets are switching to favor buyers while others are still supporting sellers. You can research your specific area or look at maps online that highlight which markets favor which buyers.

Advantages of Buying a Home in a Seller’s Market

While prospective buyers often worry about entering a seller’s market, there are a few reasons to begin the home purchase process at this time.

Here are a few often-overlooked benefits to keep in mind. 

Strong Property Value Appreciation

Homes in seller’s markets typically appreciate faster than national averages, which means your home has a higher chance of yielding strong long-term returns. If demand stays high and you need to sell in a few years, you might have an easier time at least breaking even. Property values in high-demand areas also tend to hold steady even during market corrections. Entering a competitive market could be a sound investment. 

Motivated Seller Behavior

Sellers are more likely to list quality properties when they’re confident they will sell. Conversely, when markets become uncertain, sellers will delist or wait to move until they feel better about this major life decision. 

This means buyers can find well-maintained homes on the market instead of touring distressed properties or houses recently renovated by flippers. This also increases the chances that buyers can find homes in desirable neighborhoods. They can look for quality properties in high-demand areas.

Housing inventory is also increasing. There are more than one million houses on the market in 2025 as more people look to sell and move. Now could be a good time to take advantage of market trends before they shift.

Faster Transaction Timelines

Homeowners get excited about entering seller’s markets because they can move quickly and won’t have to list their houses for long. Interested buyers can take advantage of this motivation and enjoy streamlined processes and short deadlines. 

Because both parties want to act quickly, they will work to overcome deal complications and prevent delayed closings. Some sellers might be more accommodating on timing and closing date preferences, and there is less of a chance of their changing terms or holding up the sale. They don’t want to relist and potentially concern other buyers who might think there is something wrong with the property after a buyer backs out.

Market Timing Benefits

Many homeowners are both buyers and sellers. They benefit from entering the seller’s market when listing their homes, but then need to compete as buyers when they search for their next place to live. Acting quickly allows both buyers and sellers to navigate the real estate market as-is, before houses appreciate further or interest rates change. 

Interest rates reached 8.45% in 2023 but have stabilized around 6.5% in recent years. Entering the market during a period of stability can help you feel confident when calculating your estimated home loan terms.

Long-term Investment Advantages

Don’t just think about the current housing market. Consider the long-term results of buying in a seller’s market. You may be able to build your equity faster if you move to a desirable area, making your sale options more profitable. First-time homebuyers can lock in mortgage rates instead of dealing with potential rent increases in the future. This provides stability and control over living conditions during uncertain times.

There will also be opportunities to refinance if rates improve. Current rates shouldn’t get in the way of your dream home.

How to Buy a Home in a Seller’s Market

You can still enter the market if you live in an area with demand exceeds supply. Here are a few strategies to be competitive in a seller’s market and navigate the home-buying process confidently.

Step 1: Get Pre-Approved for Your Home Loan

The first thing to do is get your finances in order. Get pre-approved (not just pre-qualified) with specific loan amounts and terms. This will give you an idea of your maximum home budget and expected loan terms. Working with a mortgage lender also shows homeowners that you are serious about buying a qualified to do so. 

Your lender should calculate your debt-to-income ratio to help you understand what you can afford. Most mortgage companies will only approve loans that have a DTI of 36% or lower. You can use this information to decide if you are ready to enter the current market or need to save a little more to increase your budget and negotiating power. 

If you aren’t ready to enter the housing market just yet, take steps to strengthen your finances. Work to improve your credit score and continue building your down payment. The more money you can put down, the smaller your mortgage payment will be. You might also enjoy reduced interest rates, further lowering your monthly costs.

Not all buyers have down payments of 20%, but those who can reach that threshold can also save by not paying private mortgage insurance (PMI). 

These savings add up and can help you save thousands over time. They also allow you to offer a larger earnest money deposit, showing sellers you are serious about the purchase.

Step 2: Hire a Real Estate Agent

An experienced real estate agent is an essential partner, no matter whether you are in a seller’s market or a buyer’s market. Interview multiple real estate professionals and ask them about the housing market. See how they can make your offers stand out against multiple buyers beyond offering the asking price.

“In a seller’s market, you must have an experienced agent who has a good reputation along with the knowledge to ensure they can negotiate a deal that will get accepted,” says Mike Constantine, a RE/MAX agent in Trinity, Florida. 

FastExpert has several guides for interviewing and hiring real estate agents. Remember that these professionals are people, too. You can ask questions and make sure your candidates are ready and able to give you enough support to navigate the home-buying process. 

“Meeting your Realtor for the first time can feel overwhelming,” says Christy Crouch, part of the RE/MAX Crouch Team in Cave Spring, Virginia. “Remember, they’re here to help you through one of your largest single investments. It’s important that you choose the right one with the experience, expertise, and knowledge you’re looking for. After you hire them, things will go much easier and smoother if you then allow them to do their job and take their lead.” 

During this research and hiring process, you can also identify responsive home inspectors for quick turnarounds and establish relationships with attorneys, appraisers, and other professionals. This will make it easier to know who to hire and act quickly once you start making offers and setting closing dates.

Step 3: Start the Home Search

Once you are ready to enter the housing market, your real estate agent should take steps to find homes that meet your criteria. Some buyers are looking for their dream home, while others are searching for starter properties so they can build their equity. 

Your agent should help you set up real-time listing alerts that meet your search criteria, including your desired price range, neighborhood, and amenities like bathrooms, home offices, and renovated kitchens. 

Your agent might also set parameters slightly out of your ideal range to help you learn about your options. For example, they might showcase emerging neighborhoods with favorable home prices that you might not have considered before. Searching for up-and-coming neighborhoods is a great way to avoid properties with too many buyers, which can lead to bidding wars. 

As a buyer, know your limits and identify the criteria that are most important to you. Some buyers want to live in specific school districts, while others need specific amenities. Tell your Realtor what you refuse to compromise on so they know what parameters to set. 

Step 4: Prepare an Offer for the Home You Want

Research real estate prices in your area from the past 90 days to learn what similar homes are selling for. While your agent should provide this comparative market analysis (CMA) for you, it’s possible to conduct your own research to learn about the market as well. Decide whether you want to offer at or below the asking price, and consider whether offering above asking is possible. Some buyers are willing to go above the asking price for an in-demand property, while other buyers will walk away and continue the home search. 

Along with making an offer with a favorable price, there are other ways to make your bids stand out. Offer a larger earnest money deposit on the home, or see if you can cover the closing costs for the seller. You can also set a competitive closing date if the seller wants to move quickly or offer a rent-back agreement to give the seller flexibility in moving. 

It’s also important to know who you are up against. A third of buyers (32%) make all-cash offers to sellers. This eliminates the risk of financing falling through and speeds up the closing timeline, which is why sellers prefer cash deals. If you can make a cash offer, great. If not, try to showcase your financial stability through proof of funds documents and income statements to show sellers that you will be able to get a loan. 

Step 5: Look for Alternative Home Buying Strategies

You might need to get more creative when finding a home in a seller’s market than in a buyer’s market. For example, you can explore new construction options with builder incentives as a way to save money. Some builders have in-house financing and can offer competitive interest rates below national levels. This could change your purchase budget if lower interest rates reduce your expected monthly payments. 

Alternatively, you can look into fixer-uppers in desirable neighborhoods with renovation potential or look into rising neighborhoods that could be in demand in the future. There are several options in the real estate market for buyers who can be flexible. 

If you are willing to be patient in the buying process, ask your Realtor about off-market listings. You might get a competitive edge on other buyers by reaching out to potential sellers before they list. Some sellers might welcome offers pre-listing so they can skip the showing and open house processes. 

Know what you want out of your house when there is limited supply available. This will help you identify non-negotiable features versus amenities that would be nice to have.

Step 6: Explore Creative Financing Solutions

Creative financing options can also make your offers stand out beyond the asking price in a seller’s market. They allow you to offer higher earnest money deposits and provide higher down payments on the home value. 

A bridge loan could be a good option if you are selling your current house before buying the next one. This short-term funding can make the transition easier. Home equity loans and lines of credit (HELOCs) can also provide down payment assistance if you are worried about competing offers. 

This also could be an interesting time to consider an adjustable-rate mortgage (ARM). These loans have fluctuating interest rates depending on the market. You could potentially save a lot of money if rates drop, but could also end up paying more if they increase. 

Explore your options and know the pros and cons of each as you search for your future house in a seller’s market.

Step 7: Protect Yourself in a Seller’s Market

One of the challenges of entering a seller’s market is overcoming the pressure that comes with more competition. You don’t want to go beyond the asking price when you don’t feel comfortable, and shouldn’t offer more earnest money than you can afford. In a buyer’s market, you can walk away from a home and find another. In a seller’s market, bidding on each available property feels like a fight.

There are a few ways you can protect your finances and mental health during this time. 

• Set a firm budget. You do not want to overpay and feel stuck with a large mortgage. Overbidding might also make it harder to secure financing. 
• Maintain objective property evaluation criteria. Understand the home value of the listings you consider. Do not get caught up in bidding and pay more than the home is worth. This will make the house harder to secure financing for and potentially harder to sell to recoup your costs. 
• Understand the consequences of waived contingencies. Never skip the home inspection and appraisal processes. These contingencies help you learn about the home and ensure it is in good condition. Many potential buyers are left with unexpected and costly repairs because they waived inspections in a seller’s market. 
• Use professional guidance. Let your real estate agent and attorney review any contracts you sign. Ask for help reviewing financial documents when you need it.

“Hire an experienced, knowledgeable, top buyer’s agent who will advise you and has the tools to get your offer accepted in a seller’s market,” says Charlotte Marrocco-Mohler, a Realtor in Nashua, New Hampshire. The right team can guide you through this competitive and complex process.

Work with FastExpert Agents for Success

Buying a house can be stressful regardless of whether you are entering a seller’s or buyer’s market. However, you don’t have to go through this process alone. More buyers than ever are turning to FastExpert to find qualified agents who can help with through the purchase process. Find Realtors in your area who are able to help you. 

Buyers who approach the market with realistic expectations, strong financial preparation, and experienced professional support can achieve their homeownership goals even in the most competitive conditions. Try FastExpert today and take the first steps toward finding your dream home.