Few things are as frustrating as finding the perfect house and then losing it out to a buyer who bids higher, pays all cash, or makes the cleanest offer. With all-time low inventory characterizing today’s real estate market, winning the right home means you have to bid quickly and competitively. With today’s market of quickly rising property prices and bidding wars raging on, acquiring a home of your dreams demands that you make the right moves and avoid anything that could shut you out.
Wondering how you can better your chance of buying your ideal home with a host of other buyers looking at the few available properties you’re looking at? Read on to find out how.
5 Tips to Help You Come Out Ahead in a Low-Inventory Market
1. Assemble a Trusted Team of Trusted Advisors
To win in 2021’s competitive environment, buyers need to be more prepared than ever. Since agents bring sellers and buyers together on unlisted properties, working with an expert local agent and lender with extensive local market knowledge will help you craft a winning offer.
”Buyers need a support team that includes a Real Estate Specialist with unique strategies to help them win, and an amazing Local Lender to ensure they have the best opportunities to get the homes they want in the hyper-competitive market of 2021,”Becky Babcock, Path & Post CEO.
To ensure you’re armed for victory, reach out to a local real estate professional that will call you about new listings before the public learns about them and negotiate on your behalf in the housing market this season.
2. Limit Contingencies in Your Offer
In today’s fast-paced market, contingencies will only serve to increase your risk of losing out on a good deal. To be more flexible and accommodating to sellers, make your offer as clean as possible by including as few contingencies as possible when writing up your purchase agreement. When inventories are tight, sellers will look at the best offer based on what matters most to them. A competitive bid with few contingencies will be more attractive to the seller than a higher bid with more contingencies.
Being flexible with the move-in date and doing away with restrictions related to your existing home’s sale can make a bid more appealing to sellers. Be prepared to make tradeoffs such as shorter contingency periods to ensure your offer is as clean as possible.
If you have a home to sell, understand all of the options available.
3. Prioritize Preferences and Deal Breakers
In a busy real estate market, homes do not stay on the market for long. Since no home is perfect, you will need to evaluate your must-haves and deal-breakers and then prioritize realistic preferences when searching for your ideal home. In a sellers’ market, buyers willing to overlook cosmetic renovations will open up their odds of finding a home in a tight market. If your ideal home proves hard to come by, assess the costs involved to make renovations or repairs yourself (ask about our Smart Check process). Determine if the reward of being the proud new owner outweighs the convenience and costs to make those renovations or repairs.
Pro-tip: Always keep resale value in mind: location, room count, floor plan design & features.
4. Get Pre-Approved Before You Start Shopping
Sellers are more likely to be enticed by your offer if you’re fully approved for financing, not just a pre-approval. It’s crucial to get your approval ready to go ahead of time with the fierce competition out there. When buying in a tight market, a day or two is what you’ll get to submit your offer; thus, getting approved before shopping can be the make or break point for your offer. Having your approval ready makes your offer stronger and sets you apart from the crowd. On the other hand, being qualified while you’re still figuring out what house you can afford shows seriousness on your part as a buyer.
5. Consider Virtual Showings
In a hot seller market, properties draw several interested buyers in a matter of a few days. Taking virtual home tours before seeing listings in person will give you an edge over other buyers and allow you to narrow your options fast. By previewing homes, homebuyers using self-tour options such as 3D and virtual home tours bypass those who don’t by getting into contracts sooner.
Ready to take your next step in your home-buying journey? When it comes to finding that perfect home in a tight market, clear directions, a plan, and the right team are essential. If you’re looking forward to working with an experienced buyer specialist, Path & Post is your best bet. Let us know how we can help you.
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