Staying Positive While Searching For A Home
The real estate market is certainly robust and in favor of sellers. With the low housing inventory and record-high prices most have the opportunity to make big profits quickly. Homes typically sold in about one week with receiving full asking price, according to the National Association of Realtors’ 2021 Profile of Home Buyers and Sellers. On top of this bidding wars had also pushed up home prices even further.
On the flip side there are numerous buyers who are having to deal with a very competitive and sometimes frustrating housing market. The same study from the NAR stated that 35% of homebuyers purchased their home for above the asking price. While it may seem like an uphill battle these days to buy a home there are some ways to be best prepared and remain positive through the process. Here are a few ideas that you can try on your end.
Get pre-approved
Especially these days don’t even bother looking online for a home and getting excited if you haven’t gotten pre-approved yet. This is a basic essential that needs to be done in a normal market let alone a highly competitive one. This letter proves to a seller that you have a commitment from a financial institution to finance your purchase.
Put out an APB that you are looking for a house
Simply put – tell everyone you know you are looking. You never know who in your network may help you find a home. Also, if you find that you may have some sort of personal relationship with a seller then it may increase your chances of getting your offer accepted.
Be flexible on a rent-back situation
There are some ways you can be flexible or accommodating to a seller beyond the price paid or waiving important things like a home inspection. Consider catering to the seller’s needs in the way of an ideal closing date. This may mean either waiting longer for the closing or entering a rent-back situation temporarily.
Consider some sweat equity
Finally, most people want to find a home that is turnkey where all you have to do is move your things in. However, where market conditions are as competitive as they are, you may want to open up your search and consider a home that has good bones but may need a little TLC. This may help you not only get a home but could also help you get it at a price that is more within your comfortable budget. Any improvements can be done over time as you choose.