As we approach another spring market it’s a great time to discuss strategies and techniques buyers can use to help their offers stand out against others. Shopping in the spring can be challenging, but setting expectations early will set you up for success!
The market isn’t as intense as the pandemic, but each spring we still see homes go into multiple offer situations in a matter of a day or two, appraisal gap coverages being offered, inspections being waived, etc.
So what’s a home buyer to do when shopping in a competitive market? Here are some of our go-to strategies to help folks get their offers accepted.
1.) Have reputable and hard-working people on your side. Having a fantastic REALTOR® and a local, reputable lender is going to put you miles ahead of other folks that are out shopping.
- What makes a good real estate agent? Someone who is ultra-responsive and always has your best interests in mind, and someone who is a full-time REALTOR®. Your real estate agent should be a great listener, should help ease anxieties, and should provide you with all the information you need to make the most informed decisions. A good REALTOR® should also think creatively and attempt to foster a connection with the listing agent. Sometimes just asking a few questions about the sellers and their needs goes a long way!
- What makes a good lender? In our opinion, a good lender is a loan officer that is local, ultra-responsive, and that comes pre-vetted by your REALTOR®, family member, or friend. Working with a reputable lender is something we are extremely passionate about. A lender shouldn’t talk down to you, should hold space for all your questions, and should be able to clearly explain the mortgage process. A bad or lackluster lender can affect your experience and the strength of your offer!
2.) Set realistic expectations from the start. It might take you longer than initially planned to find “the one.” The more flexible you can be with your timeline the better, and typically less stressful, too!
3.) Plan to shop under budget. How much you shop under budget will most likely be determined by your overall price point, but generally shopping $25k-$50k under budget is a great starting point.
4.) Get creative with your offer! This will be completely situational, but discussing different strategies and options with your agent is going to be a key component to your offer getting accepted. There are so many ways to tweak an offer, some examples of more competitive terms that we see are: assuming a specific dollar amount in inspection repairs, shortening inspection periods, allocating funds to cover a potential appraisal gap, offering to pay your closing costs, including an escalation clause for the purchase price, offering to pay your agent’s compensation out of pocket, offering the seller a rent-back, and increasing the earnest money amount.
5.) Don’t settle and stay the course. It can get discouraging when you’re trying to buy a home in a competitive market, especially if you have lost out on a home or two. Our advice is to refocus and don’t lose sight of what you are looking for in a home. It’s easy to want to settle if you are feeling the heat of the market!
If you ever have any questions about the current market we are here to help! Feel free to reach out at any time via our contact form.