Discussing nine ways buyers can gain an advantage in this tough market.
It’s no secret that this market is tough for buyers. If you’re looking to purchase a home, what can you do to get ahead? Today I want to go over nine ways you can gain a competitive advantage in our current market:
1. Be prepared to offer over the list price. Unfortunately, this is just the reality of our market. Inventory is low, and sellers are at an advantage. Offering more might hurt, but you’ll be glad you did once you’re in your new home.
2. Get ready to look for homes quickly. If you find a home you’re interested in, get out there and look at it as soon as possible.
3. Be prepared to sign an appraisal addendum. If you’re getting financing, your lender will order an appraisal. They’ll only lend up to the appraised value, but since homes are appreciating so fast, this value might not match the list price. If you sign an appraisal addendum, you let your seller know that you’re willing to move forward with the sale even if the home doesn’t appraise.
4. Give strong due diligence deposits. If you’re looking to buy a home, you have to show you have skin in the game. The best way to do this is to make a robust due diligence deposit.
“You need to be prepared to move quickly in this market. ”
5. Make clean offers. Work with your agent to make sure your offer is readable and includes all the information your seller could need.
6. Offer a rent-back agreement. The No. 1 fear sellers have is that they won’t find a new home in time. By offering to rent their old house back to them after closing, you can assuage this fear and give your offer a leg up.
7. Have a written proof of funds letter. I cannot stress this enough. Get pre-approved and make sure you can prove your finances. Sellers might not even give you the time of day without these.
8. Have your lender call the listing agent. A good lender will call the listing agent to reassure them that your finances are rock-solid.
9. Work closely with your agent. Experienced agents have the tools to help you win in a tough market. Communicate with them so that you are both on the same page.
If you are looking to buy in this market, I’d love to help you. Just call me at 919-281-3250 or email me at scott@thehoffmanrealtygroup.com. I am always willing to help!
