If competition is a buyer’s biggest concern, for goodness’ sake, get in the game. In a new survey of close to a thousand home buyers conducted by Redfin, affordability is still the number one concern but due to low inventories, competition from other buyers is moving its way up the poll.
26% identified affordability while 19% mentioned competition and 15% mentioned low inventory as their respective top concerns.
To win, athletes study the competition to come up with a plan and buying a home is not different.
- Probe, if you can, what terms are important to the seller before you write the offer.
- Once you decide to make an offer, do it swiftly so that your offer might be the only one the seller has to consider.
- Make a good (or possibly, your best) offer in the beginning; you may never get a chance at improving it. In highly competitive situations, consider offering above the list price if you believe the property may be under-valued.
- Attach your pre-approval letter from a respected lender. This means you’ll need to get pre-approved before you even think about writing an offer. Before you begin visiting properties you’re interested in is wiser.
- Ask your agent to share your lender’s contact information with the listing agent to reassure them of your ability to qualify. Let your lender know you’re doing so.
- Include a higher amount of earnest money for the price range and market area to focus the seller’s attention on yours being an offer that can be counted on to close.
- Eliminate unnecessary contingencies.
- Consider whether or not writing a personal, hand-written letter telling the seller what you like about their home and why you want it is a good idea. Ask your agent’s opinion and trust your gut instincts. This an approach that may be either very positively or negatively received by the seller.
- Minimize seller expenses paid for the benefit of the buyer.
- Shorten inspection times.
- Don’t ask for personal property. Accept personal property the seller prefers to leave with the house.
- Be flexible on closing dates to accommodate the seller’s move.
Once you find your dream home, don’t take a chance on losing it. Write an offer that is a win for both yourself and the seller.