How you can be competitive and make sure your offer is accepted.
In our last market update, we discussed sellers and the exciting market that we’re in. Today we’re talking specifically to our buyer clients and how you can be competitive to make sure that your offers are being accepted.
If you’re actively looking for a home right now, you probably know the speed at which our market is moving. Traditionally, we felt that homes which sold within the first 30 to 45 days of listing were fast sales, but right now we are seeing most homes sell within the first few days of listing for well over list price. With the market moving at such a fast pace, a lot of our buyers are getting what we call “buyer fatigue.” This means that they’re mentally exhausted from the pace of writing offers and then having them not be accepted. Here are a few things you can do as a buyer to be competitive in this market:
1. Have a realistic expectation of the market. If you are looking for a desirable home in a very competitive neighborhood, then you have to be prepared to make a strong offer that will be intriguing to the sellers. For example, if your maximum budget is $300,000 and you’re looking in a neighborhood where homes sell for $10,000, $15,000, or even $20,000 over list price, you need to be looking at homes in the $260,000 to $280,000 price range.
A lot of our buyers are getting what we call “buyer’s fatigue.”
2. Get pre-approved with a reputable local lender. Not all lenders are the same. Find a lender that has an outstanding reputation for getting loans closed on time.
3. Hire a great real estate agent. They will guide you through the process. Keep in mind that this market is completely different than what most buyers, and even a lot of Realtors, have navigated before. Having an agent who knows the market and knows how to help you win offers is going to be critical. Hiring an agent who is well-networked, resourceful, and willing to do what it takes to find you off-market opportunities will give you a tremendous advantage over agents who aren’t as motivated or skilled.
Even though our market is moving fast and is highly competitive, it is still such a great time to buy a home. Interest rates are at historic lows and fantastic homes are being sold every day.
We hope that you found these tips to be helpful and we really hope that we win your next offer. If you have questions about the real estate market or if you’re considering buying a home or selling your current one, give us a call. Our team is here to help.