When the real estate market is a seller's market - you probably expect your house to sell very quickly, and hopefully with a LOT of offers. In fact, maybe you want to have an all out bidding war
Dated: March 24 2016
This spring, buyers entering the real estate arena need to be prepared to fight like a gladiator.
Ok, maybe that’s a little harsh, but seriously – it’s pretty competitive out there! We just wrote an offer on a townhouse and come to find out that we’re one of SIX offers. This is becoming more and more common with low supply (houses) and high demand (lots of buyers!). Because housing inventory is low in popular price ranges, you’ll want to make sure you’re as prepared as possible – like a true gladiator. Here are our top tips:
Know your buying power – and have proof. This is simple if you’re paying cash – just have your banker write a letter that you’re good for the money. But, if you’re like the 83% of people that get a loan to buy a house then you’ll want to talk to a lender and get pre-approved. You can get pre-qualified in about 20 minutes but if there’s something iffy about the approval then the lender might send your file through underwriting for a full pre-approval. Benefits of doing this at the beginning of your search include knowing exactly what you can afford (might be good to know in a bidding war, right?) and when you decide in the heat of the moment to write an offer you’ll have what you need to show the seller what an awesome pre-approved buyer you are. Any delay in getting this documentation can cost you the house – meaning some other person will swoop in with an approval letter and buy it right out from under you.
Know what you want. This is probably easier said than done. If you ask to look at 72 houses because you’re not sure what you want, your agent is going to gladiator YOU. Haha, just kidding! Seriously, your agent will talk to you about what you want, don’t want, where you want to live, where you don’t want to live and help you think of other things that perhaps you hadn’t considered. Then, you can narrow your search to what you REALLY want – and with all that extra time you saved from not seeing the other 60 houses on the first list – you’ll be a step ahead of the competition.
Be realistic. Were you thinking you’d get a killer deal with 20% off? Come on now. That is definitely NOT realistic. So, talk with your agent about how the market in your desired area/price range is performing. If it’s super competitive, then you might need to plan to pay even more than the list price. Now, we’ll support you in whatever you want, but don’t be surprised if the sellers aren’t excited and hold out for a better offer.
Now that you're all set to win the real estate fight, give us a call - we'll start the house hunt.
In the competitive Des Moines market, Heather Wright combines client-focused service, innovative marketing techniques, and a decade of experience to make sure that your buying or selling experience is....