As with any seller’s market, buyers must think strategically and quickly to get their new home. Even with the pandemic, the real estate market has been on the seller’s side and continues to lean further in that direction. As buyers flock toward every new listing, here are the top strategies for getting an accepted offer.
Financial Readiness
In today’s market it’s not enough to have a preapproval for a home loan. Instead, work with your lender to have a fully underwritten loan. Most banks are willing to do this with the current market in many areas. And, needless to say, keep your finances in perfect order while looking for a home. Plus, keeping finances in shape means you’ll be able to finish out the closing much easier.
Work With a Realtor
A realtor can help you in a variety of ways, particularly in a tight market. A good realtor will be able to discuss with the seller’s realtor what the seller is really looking for in an offer. It’s a way to skip negotiation and get down to business fast before another offer comes in. Additionally, you’ll want to understand the seller’s deadlines for offers to ensure timeliness.
Consider Multifamily
Many landlords are getting ‘out of the business’ because of the pandemic. This is providing less competition for duplexes and multifamily homes in many markets. You may be able to get what you want and have an extra unit for family and friends to visit or use the other half as potential income.
Keep Looking
With the market leading to multiple offers the same day, it’s also important to continue looking at new homes coming onto the market. This way, if your offer isn’t accepted, you’re already on your way to your next offer submittal.
Provide a Flexible Offer
When creating an offer there are several things to consider in a seller’s market. Most homes are going for more than their asking price, so be prepared to offer over the listing price. Next, forego any requests for appliances, repairs, fixtures not in the listing, and other contingencies like payment of the inspection. More than likely, if your offer is simple and without demands a seller will find this more favorable. With the offer, discuss how much earnest money you should provide with your realtor. Since you’ll be paying it at closing anyway, it’s a good investment up front.
Final Thoughts
With the current seller’s market, buying a home can be time consuming and exhausting. You’ll be ahead of the curve if your finances are in order, you’re working with an experienced realtor, and you submit an offer as soon as you’ve decided you have found the home of your dreams. One of the key concepts is to craft an offer that is simple, over the list price, and offers flexibility for the seller.
