So you want to buy a house? Did you know, things are much different now, than they were 7 years ago, when you last bought a home. Throw out that rule book you had, especially here in Connecticut, things haven't settled down yet.
You must have heard it all the last few years, houses going for 30,40, in some cases even 60 or 70 thousand dollars over asking. Buyers having to put their best foot forward, only to be out bidded.
These buyers dreaded the phrase, "we have multiple offers in, and are looking for the highest and best by said date." As an investor, this is a normal occurrence. The only difference the properties an investor looks at most likely are listed well below market, because they need extensive work done.
You are a family of 4 looking for a new home, and are now faced with this same situation. The only difference is this home isn't a fixer upper, it is listed at market value, but there are already offers well over that.
Here in Connecticut this new way of buying a home continues into 2024. Not only do you have to out bid other buyers, and offer well over asking, good luck trying to get these sellers to make any repairs.
As a licensed Realtor, I will always recommend performing a home inspection with a licensed individual, before buying any type of home. In the past buyers would use home inspections to get the seller to make repairs before closing.
That was then, now in this seller's market, the seller holds all the cards. Yes, get a home inspection, but don't expect the seller to make repairs on their dime.
Don't forget you can still use your home inspection to get out of a contract, especially if you deem something unsafe and the seller won't fix it.
So now you know what the market is like, what can you do to win in the it. Keep reading for tips on how to do just that. Whether you are a buyer making an offer, or one who is about to close on a home, these tips can help everyone.
Here are my Top 8 strategies for buyers, who are in a sellers market. These strategies may help you get the keys to your next home. Remember never get discouraged out there, your new home is waiting for you.
Even before this current market, I wouldn't work with any buyer, not pre-approved or have proof of funds. As a young agent I made that mistake, and my client missed out on a home she wanted, because she wasn't pre-approved to make an offer.
Now, because of how fast good properties come off the market, if your not ready to put an offer in after you have seen a home, chances are you won't get.
Competitive Offer
If you find a good home priced great chances are others saw that too. I showed a great home the other day, and as I went to the showing, the home was already in a multiple offer situation, and the listing agent wanted highest and best.
The potential buyers knew that, and already had plans to offer well above asking. He had a number in mind, but was like, what if someone offers more?
My response was only offer what you feel comfortable at. If it is enough great, if not, the search continues. Eventually they will find a property to call home.
In the past closing dates and contingencies, where buyer leverages, now you need to make the seller happy. Remember if your offer was chosen over others, that means the seller had a choice.
Most likely home inspections are for you, and not something the seller needs to act on. Do your best to accommodate the seller, to an extent of course. Always remember in the end both parties should be happy with their decision at closing.
Minimize Contingencies
If you feel something is important, by all means bring it to the seller's attention. This is still America land of the free, although they may have leverage, you shouldn't have to bend of backwards for your seller.
Work with an Experienced Realtor
This is my self promotional plug. You want to work with a Realtor, who will get you to the finish line, especially under these conditions. You don't want someone that will just say, ya go ahead and waive your home inspection and give the seller everything they want.
Quick Responses
You want to have all your ducks in a row, especially if something is needed from seller, your Realtor, or your mortgage broker. Best way to do this is to be one step ahead.
That is if you are already under contract, the same goes for when you are looking at properties. A good Realtor can have an offer drawn up for you in a few hours or less. It is up to you to sign and return, so your Realtor can forward it along.
Strong Deposit
In this market cash is king, because an all cash deal can close quickly, and with little to no issues. That is why most investors are cash buyers, and in multiple offer situations those offers will be favored.
The second best thing is a strong offer backed by a hefty deposit. A seller may even take a lesser amount, because of it, especially if there is not much difference in the two amounts.
Research Market Trends
Yes, properties are still going over asking, but as a buyer you should still research the market. You and your Realtor should know what is going on in the market.
The last thing you need is to have buyer remorse. Yes, you won the home, but at what cost. Also you don't want to offer so much that it won't appraise at that value.
Don't be afraid to be a buyer in this market. Find yourself a good Realtor, and trust your gut. Your next home is just a quality offer away. If you would like to learn more about the market we are in, Reach out to Me! I am happy to help!
