In New Jersey and across the nation, the COVID-19 pandemic has led to a low inventory of homes on the market as owners hesitate to make significant life changes during a time of economic uncertainty. The short supply of houses, along with other factors, has created a seller's market in which prices have soared. The median price for a home in New Jersey during the first quarter of 2021 was $407,000, which was 21.5 percent higher than a year earlier.

Buying a home during a seller's market can be a formidable challenge. When the number of houses on the market falls far below the demand, sellers can expect multiple offers and buyers must be more aggressive to obtain the house they desire. Here are some effective strategies you can employ as a buyer to gain a competitive edge:

• Have your finances in order — Be sure to have a mortgage pre-approval letter from your lender before you start actively looking to buy. In addition, set aside some extra cash. Offering to place a higher-than-typical earnest money deposit will show sellers you are serious. Also, shop inventory lower than the top of your budget. Doing so will give you room to enhance your offer in the event of a bidding war with other buyers.
• Decide what you want and go for it — Make a list of “must-have” home features so that you can easily identify a home that is suitable for an offer. Make your first bid your best, rather than low-balling to invite a counteroffer. Be realistic about your limits and immediately move on if your best offer is rejected.
• Personalize your bid — Find ways to make your offer stand out from all the rest. One technique is to invite a personal connection with the seller by attaching a note to your offer along with your photograph. Letting the seller know that you have fallen in love with their home, and why, can help them see you as a person they’d like to sell it to.
• Have a skilled lawyer at hand — An experienced real estate attorney can play an important role in bringing you promptly to closing. They can help manage negotiations to resolve snags that could derail the deal.

The Law Offices of James C. Zimmermann represents buyers and sellers in New Jersey real estate transactions. We have offices conveniently located in Vernon, Wayne, Pompton Lakes, Hackensack, and Nutley, New Jersey. To schedule your free initial consultation, call us at 973-764-1633 or contact us online.