Within the last several year’s home buyers have been blessed with a good real estate market. Interest Rates have been near historical lows and housing inventories have been high. This made for a fantastic “buyer’s” market.
Well, times are changing. Inventories have decreased drastically and the number of buyers and sales have steady and in some cases increased. This has caused a “Seller’s” market. The rules have changed.
Finding a good home in this market is tough. When you find a few houses you like odds are you’ll be paying near asking price and possibly competing with other offers on the property. This can be very stressful for buyers. Having an experienced team of agents, The Blythe Real Estate Team can dramatically improve your odds of getting a house quickly or winning these bidding wars if necessary. Our experience has taught us a few tricks to improve our chances.
Here are 5 tips for buyers to use when competing with multiple offers:
1) Be Prepared
Spend time looking at homes online. Familiarize yourself with the current market; what is available and what prices similar homes are selling for. Your Real Estate agent can also help you in this department. Trust in their advice when it comes to pricing.
Be prepared with financing. Acquire your pre-approval letter from a lender before looking at homes. These two things allow you to react quick and confident when you find the right home. In this market, there is no time for delay. If you can present an offer first you can sometimes get an acceptance before your competition is ready to write anything.
2) Move quickly
With inventories low, many times houses are selling in a few days. This means there is no time to wait. Call your agent immediately and schedule a showing. Here’s another extreme idea but is working great. TAKE OFF WORK! Many buyers are only available nights and weekends to view homes. If you can take off work and view a house and write an offer in the morning you may be able to get things accepted before the evening showings even begin.
Make sure you are thorough on your showings also. Odds are you won’t get a second showing before having to write an offer. Open all doors, garages, cabinets and appliances. You’ll feel more confident if you know you looked closely at everything.
3) KIS- “Keep It Simple”
When writing an offer keep it simple and focus on the most important things to you. Come in with a good price. Ask for the seller to pay for as little closing costs as possible (or none if you’re capable). Consider leaving out things that slow down the closing or cost the seller; additional money such as Warranties and Inspections (Whole Home, Radon, Mold, Structural, Lead, Etc.). Another item to consider omitting is personal property. Especially items that the seller has stated are not staying at the home. The washer and dryer is a common example of this. Every little item matters when you’re competing.
4) Escalation Clause
These clauses can work great. Most inexperienced real estate agents are not familiar with them or are not entirely sure of the proper way to write them up. The basic concept is writing an offer escalating the price above all other offers by a certain amount. (Example= Purchase price to be $1,000 above the highest written offer up to the amount of $267,000.) These can be great tools to help you win the bid but not overpay.
5) Listen to your Real Estate Agent
The agents on our team are true professionals and are in the thick and thin of the market every day. They have a good idea of what a house will sell for and how quickly it will sell. They have great tools and knowledge at their fingertips which can help a buyer make a quick, informed decision.
When the market is hot like it is right now having an aggressive real estate team of experienced agents increases your potential of finding and purchasing the best home for your family.
Call us at (402) 960-2330 or email today to learn more tips on navigating a seller’s market. We have helped hundreds of people in these situations.
The Blythe Real Estate Team