Buying a home can be a thrilling experience. Sometimes that thrill is exciting like the first day of school, other times it’s more like being trapped on a runaway roller coaster. If the real estate market in your area is hyper-competitive, it can feel as though the coaster has left the tracts.
There are a couple of ways to regain your bearings and save your sanity. One of the best first steps is to hire a real estate agent. As a buyer, you typically won’t pay anything for using the services of a licensed agent and they’ve got the experience to help you rise to the top of a competitive offer pile.
Put your best foot forward
No one wants to overpay for anything, but if competition is stiff, there’s no time for low ball offers. When deciding on an appropriate offer, talk with your real estate agent or do your research. If similar properties in your area are selling quickly at or above the list price, you know you’ll need to add a little extra to your offer to sweeten the deal. When making this determination, keep in mind how much you want the property. If it’s your dream home, you may want to add on more than if it’s just a place to rest your head for a few years.
Eliminate the Contingencies
In a buyers market, contingencies are the norm. Whether you’re wanting to only proceed with buying a home after your sell your current one or you’re wanting a way out of your purchase agreement in the event your mortgage financing falls through, adding contingencies into your offer provides these options. In a very hot and competitive sellers market, these contingencies can push your offer to the bottom of the stack, if not exclude you altogether. Depending on your financial situation, goals, and other circumstances, you can beat out a lot of the competition by eliminating contingencies from your offer.
Write a Letter
In situations of high competition, when all other factors are equal, the choice of who gets to purchase a property often comes down to the seller. How does the seller make this choice? It can often come down to the human factor. As a species, we tend to prefer to do business with those that we know or relate to. While you may or may not have met the seller personally, it is more likely that you or your agent have had some contact with them or their agent. Use this connection to send a letter to the sellers telling a bit about yourself and explaining why you like the property. A compelling letter can often help (if only subconsciously) sway the sellers’ decision.
The Almighty Power of Cash
Nothing talks like money talks and a buyer who can show up to the table with cash in hand has a lot to say! Not only does having a cash offer mean that you don’t have to wait on a lender for approval or documents, it also tends to mean you can put down a larger down payment or earnest money which signifies to the seller that you are a truly serious buyer.
Looking for more insight before starting your home search? Check out this blog to learn what you need to know before you start your home search.
In It to Win It: How to Have a More Competitive Home Offer
