How to be a Competitive Buyer in Today’s Market
Dear future buyers,
We know the real estate market is competitive right now, but guess what? So are we. Sure, inventory is low, and demand is high, but we are here to help you put your best foot (and offer) forward. Here are a few tips to ensure you are ready to take on the market and set yourself apart as a serious buyer.
Get Pre-Approved
First, let’s clearly define what it means to be pre-approved. A mortgage pre-approval means a loan officer has looked at your finances—your income, debt, assets, and credit history—and determined how much money you can borrow, how much you could pay per month, and what your interest rate will be. Look at it as your golden ticket to homeownership because you need pre-approval before you can move forward.
But don’t get pre-approval mixed up with pre-qualification! Pre-qualification is a good indicator of your ability to borrow money for a home, but pre-approval is the action that must take place before you can place an offer.
We connect all of our clients with expert lenders in the market right away to get their finances in order and establish a solid budget, so they are ready to move quickly when they want to make an offer on a home. Being pre-approved sets you apart as a serious buyer, which is only becoming more important as inventory remains low and demand continues to soar.
Be Decisive
We believe in starting the buying process with a buyer’s consultation to help future buyers like you get a true sense of your budget, lifestyle to identify your non-negotiables from your nice-to-haves.
As our principal broker and owner, Lisa Blakemore, likes to say, “You aren’t choosing your home as much as you are eliminating all of the other homes on the market.” Having a solid baseline will refine your search and save time by ensuring you are only looking at homes that meet your needs.
But being decisive matters not only during your search process but also when you’re ready to make an offer. We encourage you to be prepared to move (both literally and figuratively), so you are ready to move forward or onto your next option at a moment’s notice.
Prepare for a Bidding War
Go into every offer knowing that any home you make an offer on will receive multiple offers just like yours. Because of the market’s competitive nature, we coach our clients to make their best offer up front, even if it’s above the asking price.
We like to educate our clients about two different tactics when the market is like this; you can place an offer on a house, or you can go out and buy a house. You may be wondering, what’s the difference? The difference is when you place an offer, you are pledging your interest in a home. However, your interest is often contingent on what comes next, such as inspections and appraisals, giving you the right to exit the contract if you aren’t pleased with the results from either evaluation. When you “go out and buy the house,” you are essentially waiving the contingencies regardless of what the inspection or appraisal results are. This is a competitive strategy for real estate investors and buyers that can assume larger financial risks within a transaction. We help you enter every transaction with a strong understanding of your budget so you can make the best decision for you.
Trust the Process (And Your Realtor®)
We know it can be discouraging to fall in love with a house, get your hopes up, and watch it all come crashing down. We know it can begin to feel hopeless and beyond your control. But fret not; that’s where we come in. We’ve been doing this a long time, and we will be your trusty advocate every step of the way—negotiating on your behalf, educating you about the most strategic options, and most importantly, fighting for your needs and wants. We will be your voice of reason and help you navigate the best path to homeownership for you.
