Back HomeBuyer, In a Seller’s Market, How to Compete
March 18th, 2017 by keithandkinsey
It’s tough for buyers out there! There’s limited housing inventory, and appropriately priced, well prepared homes are receiving multiple offers within days (sometimes even hours) on the market. As a buyer, there’s a few things you can do to beat your competition.
- Adapt your schedule – When a house is hits the market, you may need to go see it the first or second day it allows showings to have a chance at it. If a house is of interest, let your Realtor know immediately and try to schedule the soonest possible showing. If you wait 3 or 4 days, there’s a good chance it will be gone.
- Prepare your financing – In a competitive situation, it’s a must to have a pre-approval letter from your bank, and conventional financing is often more desirable to a seller than some of the more challenging specialty programs. If you are trying to buy a home contingent on the sale of your residence, talk to your lender about your options to avoid that contingency. I never recommend that somebody over-leverage themselves if they really can’t afford to carry two-mortgages, but if you can afford it, it can be beneficial to avoid the home sale contingency.
- Minimize contingencies –The fewer hurdles you must get thru, the more desirable your offer is to a seller. For example, if you are worried about radon, you may want to just skip the radon testing contingency in a competitive situation. You could test for radon after you own the home, and in most cases if it tests high, a mitigation system can be installed for under $1000. That’s hardly worth loosing the deal over if it’s the right house for you.
- Adapt to the seller – Try to figure out the sellers ideal terms, and offer something that is desirable to them. For example, if the seller has an ideal closing date, such as after the kids are done with school in June, use that in your offer.
- Use an agent and trust their advice – A good buyer’s agent can offer advice and should have strategies to give you an edge. Buyer’s without agents, or even buyers with less experienced agents can get eaten alive in a market like this. Find a great agent, use their knowledge and experience, and trust what they tell you. They are working in your best interest.
