Let’s face it, we’re in a Seller's market. Data shows inventory is drastically low and therefore home prices still high, making it a difficult market for buyers to not only find homes but ones that are affordable. Talk about intimidating. With stories of bidding wars and homes selling over asking price, how in the world do you compete in this market as a Buyer?
1. Stop putting your hope in Zillow
Zillow has become an informative and free resource where people can casually browse houses without having the pressure of house-hunting. Over the past couple years, it's become more advanced by providing neighborhood information, comps, and home estimates called "Zestimates." I hate to break it to you that although convenient, Zillow is rarely accurate. I can’t count how many times I’ve been sent a Zillow link from a client and the home's been sold for 4 months and isn’t available anymore, or the "Zestimate" (thus the information used to create it) is way off from what it actually should be. This data just doesn't stand in the real estate market today. When seriously looking for a home, you need the most accurate data and you need it quick. Get MLS listings directly sent to you inbox by using a trustworthy real estate agent. In this market, you can't afford not to.
2. Use a Realtor
I've heard numerous people tell stories of Realtors who have been unhelpful, unprofessional, and greedy. I've also had my share of negative experiences with agents who represent the professional poorly, more than I wish to say. When your only impression of Realtors is based on the faces you see on billboards coated in red lipstick and 80’s bangs (don't get me started), it can be a major turn off. All that to say, there are talented and trustworthy agents out there who can successfully assist you through the home-buying process. We go to school for this stuff and have worked multiple deals, giving us the experience and knowledge to guide you smoothly through the transaction. An agent does more than just find you a house. A {good} agent gives guidance on price, market, negotiates on your behalf, facilitates appraisals and inspections, and works with all of the parties involved. So, find a solid agent and have them work on your behalf--- it's our job.
3. Get pre-approved
If you’re a serious buyer, get all of your ducks in a row regarding financing before you start looking. Chances are that if you find the perfect house, it will sell quickly! So to make an offer fast, you'll need the pre-approval or proof of funds in hand. Why? Sellers need to know that you’re a serious buyer and can afford the house you’re making an offer on. It's also important to know that you are not only pre-approved, but for the right amount! You don't want to be shopping around for homes that cost more than you're able to afford. Getting pre-approved pronto can save everyone involved a lot of time and headache in the long run.
4. Get your act together at home
Do you need to sell your current house in order to buy? Are there projects you still need to do around the house? Given the competitive and quick moving market, it’s important to have a plan for your current living situation. If your house hasn't gone on the market yet, invite a Realtor over to discuss a listing price as a way to help you plan financially for both the sale and purchase of your home. An agent can also provide tips on getting your home ready to sell fast. To make your offer even more attractive to Sellers, have your house already under contract when making an offer. This way, you’re that much closer! In the end, non-contingent offers are the most ideal for Sellers but if that's not your story, don't worry. There are several other ways to make your offer more attractive to Sellers.
5. Strategize
With Buyers finding themselves in multiple offer situations, it’s especially important to emphasize the strong points of an offer you're making on a home. If a Seller is choosing between 8 contracts, why should they choose yours; what makes you stand out? Whether it’s flexible timing, the ability to close quickly, or the fact that it's non-contingent or cash offer, these factors are important. Your Realtor will know how to craft the perfect offer to get you the house of your dreams!
Finally, don't panic. If you're out to find the perfect home, work with a trustworthy Realtor who will answer your questions, provide the most accurate data, and fight for you to get you into your future home. True: there may not be many homes to choose from and they may sell fast, but there are plenty of ways to make yourself a competitive Buyer in this Seller's market!