Follow these tips to avoid getting discouraged in a competitive market
Cervone Deegan + Associates knows that the real estate market is robust and in favor of sellers. With the low housing inventory and record-high prices most have the opportunity to make sizable profits quickly. Properties typically sold in about one week with receiving full asking price, according to the National Association of REALTORS® 2021 Profile of Home Buyers and Sellers. Furthermore, bidding wars have also pushed up home prices even more.
On the other side of the equation there are many buyers who are having to deal with a very competitive and sometimes frustrating housing market. The same study issued by NAR stated that 35% of homebuyers purchased their home for above the asking price. While it may seem like an uphill battle lately to buy a home there are some ways to be best prepared and stay positive through the process. Here are some few ideas that you can try on your end.
Get pre-approved by a lender
Even more importantly these days don’t even bother looking online for a home and getting excited about a property if you haven’t gotten pre-approved yet. This is a basic step that needs to be done in a normal market let alone a highly competitive one. This letter confirms to a seller that you have a commitment from a lender to finance your purchase.
Tell everyone you are looking for a house
Simply stated - tell everyone that you know that you are looking to buy a home. You never know who of your contacts may help you find a home. Also, if you have some sort of personal relationship with a seller then it may increase your chances of getting your offer selected as the winner.
Be flexible on a rent-back situation
There are some ways you can be flexible or accommodating to a seller in your offer beyond the price paid or waiving important things like a home inspection. See if you can cater to the seller’s needs in the way of an ideal closing date. This may mean either waiting longer for the actual closing date or doing a rent-back situation temporarily until the seller can move.
Consider sweat equity
The majority of buyers want to find a home that is all updated where all you have to do is move your things in. However, when market conditions are as competitive as they are, you may want to broaden your search and consider a home that has good bones but may need a little updating. This might help you not only secure a home but could also help you get it at a price that is more within your budget. Any improvements or TLC touches can be done over time as you choose.