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.
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.