Staying Positive While Searching For A Home
Today’s real estate market is certainly robust and favoring sellers more so lately. With the continuing low housing inventory and record-high prices many sellers have the opportunity to make significant profits quickly. Most homes are usually selling in about one week with receiving full asking price, according to the National Association of Realtors’ 2021 Profile of Home Buyers and Sellers. Furthermore, competitive bidding wars had also pushed up home prices even further.
On the other side of the spectrum there is a large pool of buyers who are having to grapple with a very competitive and sometimes challenging housing market. The same study from the NAR issued that 35% of homebuyers bought their home for above the asking price. While it may seem like an uphill battle these days to buy a home there are some ways to be well prepared and remain positive and optimistic through the process. Here are some tips that you can follow on your end.
Get pre-approved first
Don’t even bother looking online for a home and getting excited if you haven’t gotten pre-approved by a lender yet. This is a basic step that absolutely needs to be done in a normal market let alone a highly competitive one. This letter confirms to a seller that you have a commitment from a financial institution to finance your home purchase.
Spread the word that you are looking for a house
Simply put - tell everyone who you know that you are looking to buy. You never know who in your network may help you locate a home. Also, if you find that you may have some sort of personal relationship with a seller then it may up your chances of getting your offer accepted.
Be open to a rent-back situation
There are some ways you can be flexible or accommodating to a seller other than the price paid for the home or forgoing important things like an inspection. Try catering to the seller’s needs with an ideal closing date or terms that work best for them. This could mean either pushing the closing date out or doing a rent-back situation temporarily.
Consider some sweat equity
Finally, most buyers want to locate a home that is move-in ready where all you have to do is unpack your things and settle in. However, when market conditions are as tight as they are, you may want to open up your search options and consider a home that has good bones but may need a little TLC. This might help you not only get a home but could also help you get it at a price that is more within your ideal budget. Any improvements can be worked on over time as you choose.