How to Find Your Home in 3 Shopping Days or Less
In a seller’s market, purchasing a home requires a different lens through which to see what’s what. Nearly a decade ago, the market was such that buyers almost thought that they could get something for nothing. Just like during the Great Depression, people with a little cash who got their hands on the plethora of cheap houses have amassed fortunes.
But in today’s real estate market, the seller holds the power. They own the small amount of inventory that you will have to compete for, if you really want it. It’s important that a buyer have the proper expectations set in their minds to find a home in 3 shopping days or less. In this article, we are going to explain those particulars.
Number One: Get the right professional
You’ve got to have the right Realtor. It just is what it is. A qualified, professional agent gives you so much access to properties in your city, as well as the conditions and situations that dictate their prices. An agent will help you assess your values, needs and resources to help you find the home that is right for you. But more importantly, an agent is going to make sure that you understand what it takes to be efficient with your time and money, while still beating out the competition. Remember houses are going fast.
Number Two: Know what’s up
Get the scoop on how to operate as a competitive buyer in a seller’s market. Your agent should first understand 2 very important things: everything that your lender requires to approve your loan and everything that you require to buy a house. Loaded with that arsenal of information, your agent should be expected to do a search on the few homes that should fit your criteria, in the most optimal neighborhood, at a price point you can afford… with an appointment scheduled for you to see the home ASAP!
Number Three: Keep it or throw it
Because of the time constraints that a seller’s market forces on a buyer, you have to understand that there is no time to waste. Therefore, hemming and hawing over houses to the point of analysis paralysis is probably not the best use of your time. You should expect your Realtor to have found the closest matches to your home ideals. So if one of those houses doesn’t have all that you need in a home, don’t ponder it to death. Just throw it and trust that one of the homes on your shopping list will suffice. A good agent makes this possible, if your criteria is realistic.
Number Four: Meet it or exceed it
So once you come across the home that gives you goosebumps, one that has what you want and need, one that comes in a location and price that you can work with, now the next game begins. The rest of the homes on the shopping list should either meet or exceed the one that resonates with you. You see, now you have a standard. The next house that you walk into needs to be as good as or better than the standard. If it doesn’t meet the standard, don’t waste time walking around it, looking through it, and thinking about it. But, when you come across the house that beats them all…
Number Five: Make an offer and keep your fingers crossed
Immediately submit an offer. Know that lowballing in a seller’s market will not get the desired result. In this market, it would almost be considered an insult to waste the seller’s time in such a way. Make it a good offer that’s fair, and make sure that your agent would consider your offer to be competitive.
Keep in mind what your lender allows. The house should be in a certain quality of condition for the lender to approve the loan, and they will conduct an inspection of their own. As long as the seller discloses about the condition of the property, as long as the lender’s inspection goes well, and as long as there is clear title on the property, you won’t have to go back out into the market to shop for more homes.
Number Six: Understand the money
The asking price of the house is not the only price you will need to think about. In this market, seller’s expect what’s called earnest money, which is money that you give in good faith to prove how serious you are about buying the home. It’s typically a check for somewhere between $500 to $2,000. Without out this, the seller will not take you seriously, and probably be annoyed at having their time wasted when they could get a full offer and earnest money from a more serious and education buyer.
You will have to pay a downpayment that’s typically higher in a seller’s market than in a buyer’s market. Depending on the type of loan that you are approved to acquire, this could be anywhere from 3.5% to 20%. And though down payment assistance exists, you may or may not get access to it in today’s market. As well, in a buyer’s market, you were more likely to get sellers to pay closing costs. However, today, buyer’s that expect sellers to pay closing costs can expect their offers to be at the bottom of the stack. Depending on your credit score, some lenders may offer assistance on down payments and closing costs. But, know that this might rest on your budget.
Agents with Take A Look Real Estate Brokers are trained to take your desires and needs for a home, and the requirements of your lender, and implement them into a plan of action. This plan of action should take 3 days or less to execute, and if done properly, you can boast buying a nice, new home, even in a competitive seller’s market.
If you are in the market for a new home and would like to talk to one of our professional agents, contact us!