These approaches will give you the confidence you need as a homebuyer.
Due to the coronavirus, a lot of sellers held off on selling their homes. For the most part, however, buyers continued to buy throughout March, April, and May, which in turn created the strongest seller’s market we’ve ever seen. Right now, there’s just over a one-month supply of homes; typically, six months of supply represents a balanced market, whereas anything more than that gives buyers a definite edge.
As a buyer in this market, how can you make sure you get your dream home?
- Make a cash offer—or something close. Cash is king, but most people don’t have enough money lying around to make such an offer. The next best thing we can do is work with a lender who will do the underwriting in advance so we can communicate to the seller that you’re already cleared to go. It’s close to being a cash offer, though it’s still being financed. If you don’t advance underwrite, then the bare minimum is pre-approval.
- Write a personal letter. Try to make an emotional connection with the seller by explaining who you are, what you love about the house, and why it will be a great fit for your family. If you truly want to go above and beyond with a sentimental approach, take a couple of minutes to shoot a video (if you’re working with us, we’d be happy to help you do this), and send it to the seller.
- Add escalation clauses. Let’s say the house you fell in love with was listed for $200,000, but there are at least three other offers on the table so far. We could craft an offer of $200,000 that includes parameters for how high you’re willing to go. For example, you could communicate that you’re willing to pay up to $215,000. So, the phrasing would sound something like this: My offer is $200,000, but I will beat any other offer by a minimum of $1,000 with an absolute max cap of $215,000. $15,000 is a lot over asking price. However, over the last few weeks, we’ve seen a lot of houses sell for $10,000 over. In fact, we had one we listed last week that sold for $20,000 over!
If you have questions about anything mentioned in this message or you would like help looking for houses and writing strong offers, reach out to us by phone or email. We’re here to help, and we have proven strategies to ensure your success in today’s market.