Are You Ready for Home Ownership?
A home buyer does not want to be caught off guard in a seller's market. It's one of the reasons that the most important thing a home buyer can do is trust his or her real estate agent to advise on market conditions. If it is a seller's market, it could very difficult, if not almost impossible, to buy the first home a buyer wants to buy. Because home buyers generally have very little interest in the real estate market when they are not buying a home, they don't always know how the market moves from one season to another, much less from month to month. It is often uncomfortable for a buyer to be told the market is a seller's market when the buyer may believe otherwise -- especially a buyer who is trying to buy in a down real estate market. Markets can change almost overnight. When the market changes to a seller's market, a buyer's home buying strategy needs to change with it. In a seller's market, a home buyer is unlikely to be successful using the same techniques practiced in a buyer's market.
Bidding Wars And The Science of Buying in a Low Inventory Market
Time is of the essence. Multiple offers happen with more regularity in a sellers' market than a buyer's market. That's because by its very nature a seller's market is defined in part by low inventory and lots of home buyers. A beautiful home that is priced well can attract more than one offer. Remember, you might not be the only buyer.
- Price. Price is not always the most important factor. But do not offer less than list price. Realize you may need to offer more than the amount the seller is asking.
- Earnest Money Deposit. A larger earnest money deposit might look very attractive to a seller. Ask your agent for advice on the deposit; then consider doubling or tripling that amount. You're going to pay it anyway at closing.
- Don't Request Favors. This is not the time to ask the seller to give you the refrigerator or washer and dryer, or part with fixtures, or paint the front door.
- Delay Buyer Possession. If it is customary for the seller to move at closing, give the seller a few extra days to move. Another buyer probably won't think of this maneuver, and the seller will look more kindly upon an offer that lets them move at leisure.
- Submit Preapproval and Proof of Funds Documentation. If your preapproval letter is from an out-of-area broker or lender, get a local preapproval instead. Match your preapproval letter to your sales price and date it the same day as your offer.
Why Choose The Cascade Team real estate when buying a home?
We leverage technology and service to deliver results
The Cascade Team is a real estate brokerage like no other, because of the home buyer search tools, service and savings we provide to our clients. We understand that in today’s home buying environment we need to provide the highest level of real estate service possible. We utilize online home buyer search tools to help our clients better understand home values and how the housing market is changing. In the end, you get the perfect combination of online home buying analysis tools and that personal real estate service when searching for your new home.
We looked at what homebuyers wanted from a real estate brokerage and have developed our foundation upon these three principles:
- Information: Timely real estate information and home value analysis at regular intervals, so you don't miss out on new mls listings that meet your home buying criteria.
- Trust: A trusted real estate agent you can rely on to find the homes for sale you most want to see.
- Results and Savings: Exceptional results, driven by a strong home purchase negotiation advantage
Best bidding war strategies when buying a home
As a home buyer in today's real estate market, you're no dought at your wit's end trying to find your dream home.
And when you find a home you love, you’re competing with all cash offers and bidding wars driving the sales price above what it’s listed for, and many times, even above what the home is actually worth!
While there is nothing you can do to create more homes for sale, you can certainly arm yourself by understanding the trends and patterns in the areas you’re trying to buy in.
While it’s not quite rocket science, there is definitely a significant competitive advantage to those that understand the trends of a real estate market.
Sometimes, being competitive means not looking in the most competitive price ranges in the most competitive markets.
We looked at the data on thousands of offers agents for The Cascade Team wrote and received in the last two years to see how the strategies we track affected buyers’ odds of winning a bidding war:
No better time than now to consider moving further out! Consider Monroe, where this community grows more and more each year! Consider looking further than the city. In a blog I wrote in October 2021, Snohomish County Continues to Grow, I expressed how I felt regarding more and more people choosing to move further out of town to get not only more land but more house for their money. Also, it is less competitive, with fewer buyers competing than in the cities. More home buyers most certainly drive up the house prices. But why stay in the city? The pandemic affording many people to work at home has permitted this migration to the suburbs. We see signs from many tech companies that remote work (at least in part) will be here to stay. By not having to drive into the city as often, residents have more freedom to buy more house, more land and enjoy the space that municipalities farther out in the county offer.
If you’re in the market to buy a home in this crazy market, contact me anytime to discuss what resources are available to help you understand the competitive nature of your local real estate market.
Posted by Liza Alley on