Despite this being a competitive seller’s market, buyers shouldn’t give up.
Recently, I’ve been dealing with many frustrated buyers. We’re putting in a lot of offers, but they don’t really know how to deal with this market. Every source I’ve consulted says that this market isn’t going away anytime soon, so how can a buyer make the best of this situation?
The first thing that a buyer needs to do is get themselves pre-qualified or have a proof of funds letter available. If you’re shopping around and without a financial pre-approval, no one will take your offers seriously. Similarly, if you’re buying all cash, putting your account statement with your proof of funds as part of your offer will demonstrate that you mean business.
You should always bring your best offer to the table. When drafting an offer, you need to make things simple for the seller. Consider waiving certain contingencies or buying without a home inspection or sight unseen. These things will help set you apart from your competition.
Your offers should come with as little friction as possible. For example, if the seller is asking to close in one month, don’t ask to close in three months. Similarly, some sellers want a long lease-back period. I recommend you don’t go against those wishes. When it comes to inclusions and exclusions, don’t reinvent the wheel. If a seller is saying they don’t want anything included in the sale, then leave it as is.
You should adjust your expectations. We’d all love to buy the perfect house the first time, but the reality is that most people don’t end up staying very long in their first purchase. The longer you wait to purchase a property, the more the market will go up, and you’ll lose out on the appreciation. Many of my clients are shifting focus from the forever home to the right now home. You can benefit from this market’s appreciation and trade up to the forever home in a few years.
If you would like more information, I invite you to register for my home buying webinar. If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.