Low inventories and low interest rates make for an interesting buying season.
After years of a down market, buyers entering the market are learning quickly that we are in a seller’s market. Many homes are having multiple offers and are selling in only a few days or weeks on the market. Homes that are clean with some updates and are priced correctly are being snatched up as quickly as the sign is going into the ground. So what should a buyer do in order to find their dream home and buy it before someone else does?
- Get preapproved with a local lender.
- Work with a realtor who is familiar with the neighborhoods where you are wanting to buy, also make sure this person is a full time realtor. If the realtor is working another job, they may have time restraints on when they can show you property.
- Be realistic in your asking price. If the house just came on the market, chances are the seller is not going to take a low offer. In fact, if the house is priced well and several people are interested in the property the list price may become irrelevant as the market bids the price significantly over the original list price.
- If you are going to ask for closing costs, you may want to limit the dollar amount of the closing costs. I made an offer the other day where the buyer wanted all of her closing costs paid. I advised her to maybe ask for $3000 rather than $4250 but she wanted the larger number. We lost the offer on the house. The listing Realtor told me it was close. Afterward I learned had we gone in with only $3000 in closing costs we would have had the house. Unfortunately there is no way to know this at the time of bid.
- Limit the amount of the repair cap. A seller may be more interested in an offer that doesn’t require a bunch of repairs. It may be wiser to ask for a home warranty and no repairs.
- Be flexible with your closing date. A seller with a vacant house will probably be more anxious for a short closing while a family with lots of stuff may need a longer period of time to move.
If you need help buying a home, I would love to help you. Sandi Walker-405-213-2992