6 Ways to Be the Best Buyer in a Competitive Market
Here are a few ways to be a better buyer than the rest in a competitive real estate market.
Posted: June 06, 2017 at 12:00 AM by Natalie Arnold
If you’re trying to purchase a home in a competitive market, you need to be able to prove to the seller that you are the right buyer for their home. The housing market in DFW has seen steady growth over the past few years. The demand for housing is high, but a lack of inventory has created an environment where there are too many buyers for the number of available homes. For sellers, this often leads to multiple offers for higher prices, but buyers are discovering that homes only stay on the market for short periods of time and that they often have to compete with other buyers for those properties.
If you’re a buyer, you have to bring your A game to get a shot at landing the home that you want. Here are a few ways to stand out from the crowd:
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- Get pre-approved. Getting pre-approved by a lender shows sellers that you are a serious buyer, and it lets you know how much you can afford to spend. Having a pre-approval letter in hand when you make an offer can give you an edge over other buyers who haven’t taken that extra step.
- Know what you want. These days, homes go on the market and sometimes receive multiple offers that day, which means that there is no time to wait before making a move. Before you start looking at homes, make a list of “must-haves” and know which features you’re willing to budge on, so that if you find a home that has almost everything you want, you can make an offer without a lot of deliberation. Share your list with your real estate agent so that they can try to quickly find the right home for you.
- Make a strong offer. The days of low-balling sellers are over. If a home is in good condition and has most or all of the features you’re looking for, put in a strong offer. Sellers do not have to haggle over home prices when they’re looking through multiple offers, and chances are high that they won’t let you raise your offer after submitting it. If you really like the home, make a strong offer from the start.
- Get rid of contingencies. If possible, try to reduce or completely remove the number of contingencies you have with your offer. Contingencies and other factors that could delay closing are not ideal to sellers, especially when they’re getting clean, non-contingent offers from other buyers. Talk to your real estate agent about ways to make sure that your offer is one that sellers won’t hesitate to accept.
- Make it personal. Sometimes, a letter or personal statement to the sellers can give you an advantage over other buyers. Sellers are often attached to their homes, and knowing that the person purchasing it will take good care of it can make having to part with the property a little easier. If you know that your offer is one of many, including a letter that says why this home is perfect for you could make you the top contender.
- Work with the right real estate agent. This is crucial in any home sale but especially when you’re dealing with a competitive market. Your real estate agent should be responsive and able to act quickly when you find the home that you want. They should be able to offer good advice on how much to offer and effectively negotiate if necessary. Take some time to research real estate agents before choosing one, and make sure that they have your best interests in mind.