Here are five tips for winning as a buyer in a seller’s market.
In a competitive market like this one, multiple-offer situations are common. To win as a buyer, here are five things you’ll need to do:
1. Get pre-approved. If you’re getting a loan, make sure you contact a loan officer before you set foot in a house. Properties are going quickly, so you need that pre-approval in order to make an offer right away when a home gets listed.
2. Cash is king. If you have the cash resources available, it’s smart to make an offer. If you don’t have cash, several companies will charge a 1% or 2% fee to buy a property in cash on your behalf, then they’ll sell it back to you for the fee.
3. Appraisal. If you’re a conservative buyer, you may not want to waive the appraisal. However, think about being willing to pay over a low appraised value.
“If you have the cash resources available, it’s smart to make an offer.”
4. Inspection. You can get the home inspected, but you can also tell the seller you don’t want repairs made. I recommend doing this so you can make sure nothing is seriously wrong and become a stronger buyer in their eyes.
5. Use an escalation clause. If you’re in a competitive situation, you can write into the contract that you’re willing to pay a certain amount over any other competing offer up until a certain amount. This gives you another leg up on the competition.
If you have any questions about buying in a seller’s market or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
