Buying a Home in an Sellers Market
Extremely low inventory has buyers lining up, causing multiple bids. A lot of homes sell for more than the asking price. So it would be best if you prepared yourself before making an offer.
Getting the funds.
If you are borrowing funds, get preapproved for a loan—factor in time to get all your finances in order. Mortgage brokers will need to see bank statements, tax records, and other personal financial information. They may want to see that the funds have been in your account for a few months. Mortgage brokers will also need to identify the sources of the income.
Don't use any real estate agent.
Keep the seller in mind. It is not always just about price. Think twice before attaching a list of conditions to your offer. Keep the offer clean and simple. Make it easy for the seller to do business with you. Offer non-price factors. A lower offer with a strong non-price factor may win. The seller may have a hard time finding a new home too. Offer them a rent back option. Most lenders will allow up to 60 days of rent back from a seller. Shorten the inspection time. During inspection is when a deal can fall apart. By shortening the time, the seller can get their home back on the market faster if they need to lower the seller's risk.
Don't expect a counteroffer. Put your best offer in first. The seller will see multiple offers. They don't have the time or need to counter.
Show the cash. Offering more cash than the standard earnest money shows the seller you are serious.
Look at home under your budget. Know what your highest bid price will be before you even go looking at homes. Look for a home under your budget. This way, you have room to bid up.
Expand your search. The more popular or sought-out neighborhoods come with a high price tag. Look in other areas. Go just a few miles out of your geographic search area. It may mean adding 5 to 10 minutes to your commute. But it is well worth it. Most buyers overlook great neighborhoods with good schools.
Ready to find your new dream home? Call me at 480-955-7003, and let's get started.