If you are nervous about entering the market at such a competitive time, join the club! Whether you are an experienced homebuyer or have never purchased before, having the right people in your corner makes the process much less intimidating, and you’re more likely to succeed in a bidding war.
Not many people enjoy a “bidding war”. In a seller’s market, there is less inventory than there are buyers. Inventory has been low for a few years, so when rates dipped to historic lows, that increased affordability for more people. This creates the buying frenzy you’re hearing about.
There are a few tips and tricks we can recommend when writing an offer. Each offer technique depends on several factors:
- The activity on the property
- Listing price vs. market value
- Contingencies you need
- Terms the seller is looking for
Our experience in working with buyers and sellers allows us to gather the information we need to help secure the home you want at the terms that best suit your needs.
Step 1: Start saving!
In this market, there is no such thing as “seller concessions”. You’ll need to be prepared to cover expenses such as down payment, closing costs, inspections, the appraisal, moving expenses, and unforeseen expenses that may arise after closing.
We work with local lenders that you can get in front of who will help you prepare for homeownership by having a consultation to determine where you are financially vs. where you want to be.
Step 2: Find a Licensed Real Estate Agent
Lucky for you, you’ve come to the right place! This step is so often overlooked, and the general public is unaware of how real estate transactions work. Real estate agents are so important, especially now, because the market is so competitive.
You need someone that knows how to finesse a strong offer while maintaining protection in the contract. There are a lot of moving parts during the process, and it is up to your agent to coordinate it all to ensure a smooth transaction.
Step 3: Get Pre-Approved!
What is the difference between pre-approved and pre-qualified? The main difference is that pre-approved means you have provided documentation that your lender has reviewed to verify what you’ve stated on an application.
There are a few things to consider during the pre-approval process, so check out this post for more information!
Step 4: Be Flexible.
Low inventory drive home values up. This means, generally, that you’ll get less for your money. Consider your must-haves vs. preferences, and what you can’t change about a property. Location, floor plan, and view are some features you cannot change. Interior updates can be made, pools can be built, and fences can be installed.
Consider the square footage. You would be surprised by the room some 1800 sqft floor plans have compared to 2000 sqft plans that are laid out poorly. Our agents are well-versed in the most common floor plans in our area and can point you in the right direction!