Buying a Home
So, you want to purchase a home? Really? In this market?!
Purchasing conditions today are not any less stressful than those that purchased before you… it’s just different stress. For example, my parent’s first home was much less in price than today’s buyers, but the interest rates were much higher.
A few years ago, many buyers were trying to purchase a short sale home in the market crash of 2008. It was a wild buyer’s market, and in some cases those bank approvals and pre-foreclosure deals took months to work out causing stress for buyers and sellers.
And, today’s buyers are competing in a short inventory seller’s market, while trying to compete with multiple offers. So, how does your offer look when there is seemingly always someone willing to pay more? Or pay cash!
Here are my three strategies for buyers to make their offers stand out in a competitive market:
- Don’t just get pre-approved. Get your loan fully approved pending a property address. If your loan has been through automated underwriting and you have sent all of your documents to your lender; there are lenders in Atlanta that can close very quickly given those circumstances and your loan may better compete with a cash offer. Appraisals are backed up and sometimes that can be the biggest obstacle. But be ready with your loan.
- Many buyers believe that the highest price wins. That’s not always the case. I always ask the seller’s agent if there are any circumstances that I should know about the seller’s timing on moving out. One recent example: The seller was getting married and my buyer was still in a lease. After we closed on the sale, the purchaser let the seller stay in her home to get married and honeymoon with less stress of coming home to packing and moving. Win-win. We won the bid because we could close and wait to move, and the seller took asking price and not one of the many other offers over-asking to avoid having a fast move from her home. This is not a one-off situation. There are many circumstances that have similar outcomes.
- Don’t be overly anxious. It seems to be standard operating procedure to waive every contingency and I urge you to breathe. What do you want to live with? What is your home buying experience? Can you really buy a home without a home inspection? Do you have the cash to purchase without an appraisal contingency? How much earnest money are you willing to put on the line? All of these items should be discussed prior to making any offers and not in the heat of the moment – take time to think about the above questions.
Bottom line…Have a plan and stick to it. I believe this is another temporary Covid-19 related issue and the next market cycle is right around the corner. More homes will come on the market. Have some faith and patience. I’ve never had a buyer lose a home and not find a better one!
Call me if you would like to discuss your situation. My Team can help!
By Tom Breeden