Buying a home in today’s housing market is tough, with limited inventory and lots of buyers. As a result you will likely need to compete for the home you like and want to buy.
In Part 1 of this 2-part series we talked about 3 tips to help you compete successfully as a buyer in this competitive market:
1. Getting pre-approved with a reputable lender BEFORE you start your home search
2. Working with a knowledgeable Realtor who knows the local market conditions and can guide you through the process from start to finish
3. Knowing what you NEED in your home, not just having a list of nice-to-have features
In Part 2 we focus on 2 additional ways to help you compete successfully in this housing market. Look for the free buyer guide at the end.
BE READY TO MOVE QUICKLY
In this market you will need to decide pretty fast about seeing a listing, or listings, that meet your requirements AND make an offer if it’s the right house. You can expect that other buyers are looking at the same properties, and will be ready to make offers without delay. Of course responding quickly does not guarantee your success, but delaying a home tour or waiting a day or 2 to decide about making an offer is likely to prevent you from achieving your goal of buying a house.
In order to move quickly you must know what you really need in a house, and have a current pre-approval letter ready so you can take that next important step…
WRITE A STRONG OFFER
When you find the right property you should be prepared to make an offer. Depending on your market and price point you’d better decide quickly so you don’t miss out. You will want to discuss an offer strategy with your Realtor who understands the local market conditions, the likely competition, and what impact these issues have on your offer.
You must write a strong offer to compete in today’s housing market. Keep in mind that it’s NOT just about price, but other terms and conditions that could be important to the seller and which might give you the edge (e.g., closing date, earnest money deposit, appliances, due diligence timing). Don’t count on getting a counter offer in a multiple-offer situation, so plan on making your best offer from the start.
Buyers often ask “Can I compete if I am not a cash buyer?” The answer is of course – for many sellers it’s not just about getting a cash offer but the overall terms, conditions and price, especially if a cash offer is not a high as other offers with financing.
In many markets sellers have a distinct advantage because of supply and demand, and often have multiple offers to choose from, so how do you have your offer come out on top?
Read “Is Your Offer Dressed for Success?” for some tips.
Sometimes buyers do things that sabotage their offers, perhaps without realizing it. The good news is these are all avoidable.
If you truly are interested in buying a home these days you must be prepared to compete with other buyers. You can put yourself in the best possible competitive position by working with a knowledgeable Buyer Agent, having a current pre-approval (or proof of funds if you are paying cash), knowing what you are looking for and need in a house, and be ready and willing to move quickly and make a strong offer on a property you like.
If I can help with your home search in the Carlsbad and North San Diego County area, or answer any questions about the local market conditions, please reach out to me at (760) 840-1360 (direct or text).
FREE BUYER TOOLS
My Playlist on my YouTube Channel, Homebuying Tips and Advice, is a series of 23 short videos with important information for buyers. While it’s not everything you should know, the videos will answer some key questions, and perhaps raise some others for us to discuss.
If you are relocating, you may find my video series on Relocation Tips and Advice helpful.
You can download my Fall 2020 Buyer Guide here with some helpful information to get you started.