With available homes in short supply, sellers are in control and buyers often have to concede to higher prices and terms. Buyers can’t waste time, put in low offers or make demands for fixes. Here’s what they can do, according to Bradley Tuttle’s Real Estate Update:
Make a good first impression
Not only do buyers need to impress sellers, they have to impress real estate agents by hiring only one agent and letting that agent profile their needs to the marketplace. They need to specify their “must-haves” so they don't waste everyone’s time viewing homes that lack what they want most. When they find the home they want, they should send the seller a letter outlining why they love the home along with the offer.
Get lender’s preapproval
Not only will getting preapproved inform buyers how much home they can afford, it allows them to make an offer quickly. Their Realtor can include the fact that the buyers are preapproved with the offer, which will carry weight with the seller.
Shop within that price range
Shopping for homes within or slightly below the buyer’s price range will give them more room to make full-price offers or above in case they get into a bidding war with other buyers. They’ll also be able to pay their own closing costs.
Every home has its flaws, but buyers may get more home for the money by purchasing an older home needing renovation. Look past unattractive features such as wallpaper and stained carpet, and try to see what the home would look like with updated elements. They may able get more living space in an older neighborhood than with a newer home that offers the same square footage.
House hunting requires buyers to be ready – to see a new listing at a moment's notice, or to make an offer when they believe they’ve found the right home. Once a seller has accepted the offer, proceed as if in a normal market by setting a reasonable closing date that accommodates the seller as much as possible. Confirm the offer with the lender, schedule the necessary inspections and don't nitpick the seller over small things.
Source: Bradley Tuttle’s Real Estate Update
Owner and Founder
RE/MAX of Boulder