Today’s buyers are worried about the race to get a foot in the door. Too few homes hitting the market and too many buyers wading into the buying race. To be successful in this market buyers need to concentrate on the basics:
Before you start house hunting, getting the preapproval letter from your lender allows you to decide on price range and buying power. Preapproval is almost mandatory in today’s real estate. Without it, you’re submitting a non-competitive offer. Think about it. New listing hits the market and you are one of two bids. The other buyer has secured and presented a preapproval letter. Your offer does not. If you were the seller which offer would you lean toward? It’s a no brainer- find out what you can afford and have written documentation to back it up.
In most cases when a well-priced listing hits the market buyers don’t have a lot of time to react. If you or your Realtor® find a new listing you be limited to a very short time frame to make an appointment to view the property. And, in many cases, time to make a decision about writing a contract is also very short. Buyers don’t have days to think about things. In many cases, buyers are lucky to have 24 hours to visit and write a contract. If the speed is killing you then think about new construction. Or revisit homes listed a while ago. Some were priced too high for the market and by the time they lowered their prices -buyers had moved on. Perfectly good properties that may easier to negotiate at a slower pace.
Keep it simple, stupid! Sorry to state the obvious but many buyers heavily influenced by social media think they can negotiate for everything and anything. Think about your contract to purchase. Keep it simple! The more stuff you ask for leads to more complicated negotiations. And in the case of multiple offers, the seller may not want to be bothered. I’m not suggesting you don’t ask for a home inspection or ignore the financing and insurance contingencies. Contingencies that include waiting for a parental review, large seller contributions to closing costs (without adjusting for the impact on actual seller net), and/or asking for the pool table, hot tub, and freestanding wine fridge that were excluded from sale complicate contract negotiations.
Be prepared! Keep your cool. Listen to your Realtor®. The housing market is crazy and with low, low-interest rates it’s going to remain hectic for months to come. It’s hard to stay positive after a few lost bids but focus on the end result and hang in there.