When you are in the market to buy a home, you will face multiple battles along the way. We are facing a housing shortage that most agents and consumers have never seen.
As always, when looking to buy a home, your first call should be to your favorite agent.
Realtors will take the time to learn what to look for in a new home and when you will be available. Make no mistake, in today’s market you need to be available to view a property on short notice and preferably on the day it comes on the market.
If you don’t act right away, there is a high chance you won’t be able to see it at all.
Given the shortage of stock, be prepared to make an offer right after viewing the property. If you need to sleep on it, you probably won’t sleep in it.
Gone are the days when you could take the time to ponder whether a home was the “right” home for your family. Today you need to make that decision immediately when you view the property.
Sellers have a choice of different offers, with most properties ending up in multiple offers within hours to days of being listed.
You should consider the following when submitting your offer:
Loan Type Are You Pre-Approved For A Conventional Loan? FHA loan? VA loan? USDA loan? Most home sellers are looking for the cleanest listing terms, not just the best price. Different loan types may require inspections or look for certain security elements during the evaluation.
PRICE List price most likely won’t bring you home. Homes sell above asking price and sometimes well above asking price. When looking at homes with a list price at the high end of your budget, it may be disappointing to learn that you are likely to be outbid by buyers whose budget may exceed the list price.
BUYER’S CLOSING COSTS Are you asking the seller to pay your closing costs? If you answered “yes”, you should take this into account when submitting your offer. Increasing the sales price to cover your closing costs may be the only way to keep your offering competitive. Being able to pay your own closing costs can make it more attractive to a seller.
INSPECTIONS Getting a property inspected is always a good idea. However, many buyers forego all inspections in order to make their listing as competitive as possible. However, other buyers continue to choose to have inspections carried out and state that they will continue to accept the property with any defects and not ask the seller for repairs.
CONCLUSION How fast can your lender close the loan? 30 days? 45 days? 60 days? If a seller is looking for a quick deal, their offer may be more appealing to them. The seller may need a late close or possession time after the close. Are you in a position where you can give the seller more time to move?
Brokers can walk you through all of these articles and together decide how to make your listing as competitive as possible so that the seller has the best chance of selecting your listing. With so many homebuyers and so limited inventory, don’t be surprised if your offer is not accepted and you find that multiple homes do. The fight is real. Do not give up. The right home will come and when it does your offer will be accepted.
Rich Cosgrove is President of Stark Trumbull Area Realtors. If you have any questions or comments about this article, please email [email protected]
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