Setting Yourself Up for Success as a Homebuyer
Here’s how homebuyers can win in this competitive market.
This real estate market is tighter than ever for homebuyers, but here are some things you can do in this market to put yourself in the best position to succeed:
1. Pre-approval. This is a huge step. You need to be pre-approved with a pre-approval letter in hand from your lender. This will put you in a really good place to compete with cash buyers out there.
2. ASAP setting. Have your agent set up your matrix portal in ASAP mode and concierge mode so you and your agent are both seeing things in real time. You want to have your parameters set on your must-haves only.
3. Drive-by mode. When you see something on your portal that you like, get out there and drive there in person. Get in your car and go to the property, check out the neighborhood, and make sure it’s a good fit based on its outward appearance. You can do this virtually on Google Street View.
"Find out what’s important to a seller beyond money."
4. Commit to an agent. You want to work with an agent you’re fully committed to and who is fully committed to you. There needs to be that mutual exclusivity so you’re at the top of their list when a property hits the market that fits your needs.
5. Present offers in person. This is a huge piece. I can’t tell you how many times we’ve won a negotiation because we took the time to sit down with a seller in person and talk things out. We weren't the highest bid, but we worked the deal in person, got to know the seller, and tailored our offer to exactly what they wanted. There are a lot of things you can do to create empathy between you and the seller and give yourself a better chance of winning.
6. Discover sellers’ needs. Find out what’s important to them beyond money. The highest possible price isn’t always the only thing that matters. Maybe they want an extended closing, inclusions, or exclusions.
7. Put your best foot forward. When you make your offer, you might only get one shot to do so. Think about what your best offer is, and step up. I’m not encouraging you to overpay for a home, but consider your time horizon. $10,000 isn’t a whole lot when you spread it out over a 15- or 30-year mortgage. It’s always best to make smart decisions, but when you see a property you like, you need to put your best foot forward to secure it in this competitive market.
These are the best ways to give yourself a fighting chance in this market. If you have any questions about buying a home, selling a home, or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.