Q: How Can Buyers Succeed in This Market? - High Performance Real Estate Advisors

Here are six things that buyers need to think about as they navigate this hot seller’s market.

If you’re in the market to buy a home, here are six things to think about if you want to find success in a market with such hot competition and low inventory:

1. Earnest money and due diligence fees. Be sure to include time frames and amounts in the contract that are reflective of how serious you are about that property. Make sure the amounts are attractive to the seller and that the dates included don’t leave the property off of the market longer than our conditions will allow.

“Failing to offer an aggressive price will likely leave you without a house.”

2. Prove to the sellers that you are more than qualified. Buyers should be fully pre-approved and underwritten; at this point, your lender should only need to see an address and get an appraisal on the property. For sellers, make sure the buyer you’re working with is aligned with a local lender. You may even want your agent to contact your buyer’s lender to ensure that they’re fully through the underwriting process and that there aren’t any surprises in their offer in terms of their ability to secure a loan.

3. Be flexible on the settlement date. Give the seller a closing date that works for them, since they’re the ones who get to dictate that sort of thing in this market.

4. Don’t ask for odd things. If you ask the seller to leave their $20,000 entertainment system in your offer, for example, the seller may very well put your offer to the side. Since multiple-offer situations are abundant in this market, you really can’t afford to draft an off-putting offer like this. Make your offer as clean as possible.

5. Make your offer personal. Write a ‘love letter’ to the seller that details why you fell in love with their home and what your family plans to do with it once you move it. You can even include a picture of your family to maybe tug on the seller’s heartstrings. To really stand out among your competition, consider making a video instead of a hand-written letter.

6. Write your best offer. If the home is listed at $350,000, you’re willing to pay that much, and the market supports that price, don’t come in at $330,000 to leave room for negotiating. That strategy will likely leave you without a house. Chances are that other offers will come in higher than yours, and the sellers will toss yours aside in favor of one with a better starting price.

If you’re a seller, we can help you fetch the best possible price and terms for your home. Reach out to us or visit www.HighPerformanceRealEstate.com to get a free home evaluation that will let you know what you could net if you sold your home with us. For any other questions that buyers and sellers have, don’t hesitate to contact us. We’d love to help you navigate the market and find your happy ending.