We’re in a seller’s market, which in turn makes it competitive for buyers. In this post, I will share with you 5 tips on how to prepare you to get the home you want in a competitive market.
Finances & pre-approval
Before you make an offer you should get pre-approved for a mortgage. Pre-approval is a crucial step in mitigating financial constraints in the buying process and showing the seller that you are motivated.
Along with pre-approval, know your buying limits and budget. A couple of items to have ready are:
- How much are you willing to pay for a down payment
- What is your budget for any immediate repairs needed
Know what you want and what you can do without
Knowing what you “must-have” and what would be “nice-to-have” can help you make faster decisions.
Making a quick decision on a property displays buyer motivation and can prevent the property from getting bought out from under you.
I have my clients build a “must-have” checklist ahead of time which allows us to quickly make decisions on properties we’re considering.
Work with your agent to find the best lenders and rates
Your agent should be able to provide you with a few trusted lenders they work with that will help you get the most favorable rates and terms. Having your lender set up will expedite the transaction and provide confidence to the seller.
As your agent, I am constantly mindful of rates and I work closely with a basket of lenders to ensure my clients get the best rates and service.
Don’t restrict sellers to a timeline and be willing to make concessions
In a competitive market, you will most likely have to make some concessions in order to get what you want.
While you have your “must-haves”, you will need to be willing to concede some “nice-to-haves”. You will need to be prepared to forgo nitpicking some details, especially ones that could be additional seller costs.
Additionally, having a more flexible timeline can be a positive indicator to sellers.
Personalized offer letter
In a competitive environment, a personalized touch can go a long way.
For example, if sellers have strong nostalgic feelings about their home they would most likely prefer selling it to someone who would adopt it and make it their home vs. someone looking for a quick flip or rental.
Adding a personal letter telling the seller what you love about their home and how you would be excited to live their could go a long way in swaying the seller decision even if better offers are on the table.
Are you ready to buy or sell your home this spring? I can help you navigate these competitive residential real estate markets. Contact me here.