When there is a low amount of inventory on the market, buyers can end up competing for desirable homes. Buyers may be both amazed and frustrated about how difficult it is to get their offer accepted by sellers. Sellers, having their pick, favour cash offers,
If you are a buyer looking for a home, here are some tips to help your offer get accepted by the seller:
1.) JUMP! With inventory low, keep your requirements for neighborhood, size, schools etc flexible. You do not have to compromise on everything, but know your strongly preferred, your acceptable, and “no way” features. Once you have neighborhoods, schools, and the characteristics of your preferred home narrowed down, make sure you give your Realtor your list. Then, check on new homes coming to market on a daily basis. Your Realtor can set up an automated delivery system to send new listings, matching your criteria, to be delivered to your inbox every day. Be prepared to see the home within the first 3 days of the listing coming on the market. The sooner the better. Your Realtor can find out how the offers will be reviewed and any requirements specific to the listing.
2.) Your Own Realtor:. If you don’t have your own Realtor working on your behalf, get one! Don’t rely on getting a deal from the listing agent as a double-ended deal. In a seller’s market in particular, the seller’s and listing broker’s job is to get the highest price and when multiple offers are common, if the seller is going to save on commission they are most likely not going to pass it on the savings to the buyer. Now, more than ever, you need an Realtor that is on top of the market, new listings, pending and sold homes in your area of interest. These are common requirements for any market situation but with a low, fast-moving inventory of homes to buy, the realtor does not have a lot of time to do home work. Discuss the neighborhoods with your agent and understand the current trends.
3.) Solid Financing: When a buyer is competing with several other offers, it is important to have the strongest financing available. Choosing a loan officer and loan product that allows you to place the most down payment while obtaining the lowest interest rate is the goal. Your lender should have a complete file with loan application, documentation, and credit reports complete. This allows a strong pre-approval letter to be presented with your offer. The lender should be working in tandem with your Realtor to support your offer when it is presented.
4.) Get physical! During the house hunting process, learn as much as you can about the homes you are interested in. Drive around the neighbourhood. Ask for any inspection reports, disclosure reports, or school reports that are available from the seller. The more information you can collect before an offer is presented, the more aggressive you can be regarding the contingency time periods. Home inspections are key in getting an overview of the condition of the house. Of course, most Realtors have a good eye for warning signs, but recognize they are not inspectors and time to completely evaluate a home is extremely important. Have your inspector ready to go, so the conditional period can be as short a time as possible.
5.) Patience is key! Patience, patience, patience. As much as I advise buyer’s to be ready to jump, I also advise the process can lead to an overwhelming sense of urgency to have an offer accepted which may outweigh the comfortable necessity of careful consideration and value. The real estate process almost always has some stress involved for new and experienced buyers. The more knowledge you and your Realtor have about a particular neighbourhood, market and home, the better the offer strategy will be and the more likely it will gain the seller’s nod of approval. It may take several attempts, but the right home and the right deal will come along.
If you would like to talk about strategies to find the right home for you, contact me