Buyers Need Market Savvy For Today’s Highly Competitive Real Estate Environment

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It seems ages ago when there were not enough buyers to snatch up the overabundance of homes for sale on the market. Today, it is an entirely different story. With inventory at its lowest in years, more and more buyers are having to resort to their best offers, pulling out all stops right from the start. But how can you expect to win a bid when you are competing against many other buyers vying for the same property?

We’ve shared four tips on buyer savvy during a highly competitive real estate market.

Know Your Financial Outlook Before Getting Started

The very first step all homebuyers should take is to evaluate their financial situation. Whether this means taking a closer look at cash reserves on hand, deciding how much money to put down on the purchase or considering an affordable monthly payment amount to stay within. You will benefit greatly from a consultation with a mortgage consultation. They will examine your debt-to-income ratio and pre-qualify you for a loan. When you present an offer with proof of financing (or proof of funds for cash transactions), sellers will likely take your offer far more seriously than other offers without these assurances. It’s also critical to hold off on any big spending.

Take Competitors’ Timing Into Considerations

In a market when very few well-priced homes in good condition pop up on the market, it goes without saying that time is of the essence. These days, buyers almost flock to new listings following the frenzy that listing agents attempt to create in today’s selling environment. Be sure to make every attempt to view a new listing that interests you as quickly as possible to avoid missing a chance at the property altogether.

Don’t Procrastinate On a Decision to Make An Offer

If you see it, if you like it, don’t hesitate to make an offer on it. This may sound hasty but as long as you are sure you like the home, why wait to make an offer only to find that someone else beat you to it? Once again, having a preapproval in place helps to thwart other buyers’ attempts but keep in mind you will have plenty of competition to contend with, so the faster the better. It helps to obtain advance knowledge of neighborhood details such as school system information, property tax averages or neighborhood amenities.

Present Your Best Offer To Begin With

A best offer does not automatically mean more money. In fact, sellers often base their decision on other factors such as the contingencies placed on a contract, as well as the simplicity or complexity of an offer. Savvy buyers have already reviewed the contract in detail and know what they are getting into, asking any questions of their real estate agent ahead of time. Make your offer as clean, simple and straightforward as possible and if you can be flexible with things like closing dates or inspection periods – do it.
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If you would like to learn more about how we can help guide you through a successful home buying process, contact us today. We look forward to making your real estate goals become a reality.