Developing a Winning Strategy in a Competitive Housing Market
Ready to buy your next home? Hearing that it may be difficult? Preparation is the key to increasing your chances. Reduce your stress level by knowing what you need to do to be prepared to write “an offer they can’t refuse”.
Your first step should be to align yourself with a licensed and experienced professional. Knowledge and advice from someone that will advocate for you and in your best interest will save you money while creating a smooth and enjoyable transaction. Be certain that you understand the wording and intent of the purchase and sales agreement and all the legal ramifications that are involved.
Your broker’s experience in this market is critical. You will need to make your way through quite a few steps before closing. Each transaction is different and doesn’t always depend on the highest dollar amount offered.
Loan originators (if needed) will give you a clear idea of what is required for you to qualify for a mortgage and answer all questions and discuss different financial scenarios available to you. This will enable you to make the “strongest” offer that you are comfortable with so that you will be able to compete with other buyers in this market. You can request a pre-approval letter to share with the sellers to prove that you are “ready, willing and able” to purchase their home. (SHOW ME THE MONEY!)
Here are a few other details that your broker can provide guidance on as your offer is prepared:
- Choosing a closing date. Be flexible! Many sellers have extenuating circumstances where an earlier or later closing date makes your offer more attractive.
- A larger escrow amount will help the seller to know how serious you are about buying this property. (Not just shopping around)
- Offer a shorter time to get inspections done and due diligence completed.
- Don’t make a “lowball” offer as it may insult the seller and you could lose the chance to make a counteroffer!
- Keep it simple! Include as few contingencies as possible without risking later problems.
Experienced negotiators are critical to have on your side. In a competitive market, it’s more important than ever. You usually don’t get but one chance to have your offer accepted over others so make it a good one. Waiting for responses from sellers can be tedious…be patient…big decisions are being made…
"You've Got A Friend in Real Estate"
Jarod Tanksley 615.403.8265
Brentview Realty 615.373.2814
Posted on 02/15/2022 10:20 AM by Jarod Tanksley