Few housing markets have been as competitive as today’s. For one, for-sale listings are at an all-time low. To make matters worse? The pandemic — not to mention record-low mortgage rates — has sent demand soaring.
The result is a high-stakes market where homes fly off the shelves in just a matter of weeks (18 days on average!)
It’s making it harder than ever for homebuyers — not just to find a home, but to stand out from other buyers and win out when they do.
Are you planning to buy a home in this red-hot market? Make sure you set yourself up for success from the beginning. Here are five ways to do it:
1. Come preapproved.
Getting preapproved for your mortgage is the absolute best thing you can do for your homebuying chances. For one, it shows sellers that you’re serious about buying a house — and that you’re willing to put in the work.
On top of this, it also tells them you’re a safe bet to follow through on your offer — that you’ve got decent credit and that a lender is willing to loan you the money to buy their house. These two things can do wonders in helping you stand out from other bidders.
2. Offer cash (or something like it).
Cash offers almost always win out with sellers. They’re a sure bet, and they mean a fast, easy, and hassle-free sale, too. In many cases, sellers are even willing to cut a deal for cash buyers – another huge perk to consider.
Still, coming up with a few hundred grand in cash is no easy feat. Fortunately, there are “cash offer solutions” — which don’t actually require the cold, hard cash — that might be able to give you the same advantages. Options include things Ribbon, Accept.inc, or HomeLight’s Cash Offer, just to name a few.
3. Be flexible.
You’d be surprised how much being flexible with your closing date can help your case. In today’s market, sellers are juggling all sorts of things — buying their next homes, job changes, remote school and work, and various other pandemic-related struggles.
Having a buyer who’s willing to be flexible about when their sale closes is often just what a busy seller needs — and wants.
4. Offer a rent-back.
Rent-backs — also called lease-backs — are when a buyer allows the seller to live in the home after the loan has closed. The seller pays a fee to the buyer for this service or, in some cases, they live in the home rent-free for a few days, weeks, or months while trying to find their next property.
These sorts of benefits are huge in today’s market, when sellers are also struggling to find a property amid very low inventory and high-stakes competition.
5. Shop low and offer high.
Another great option? Shop well below your budget, and come in with an above-listing offer. Money talks, and coming in from the start with a higher-than-asking bid can do a lot to get you noticed — not to mention win out against other buyers that might be in the mix.
Prep now, win later
If you want to win out in today’s super-competitive market, it’s important to put in the work now. Talk with your agent about potential strategies for standing out, and make sure you’re preapproved for a mortgage loan well before shopping for a home. Need help doing that? Get in touch with Premier Nationwide Lending today.
Premier Nationwide Lending is an Equal Housing Opportunity lender. Sponsored by NTFN, Inc. 700 State Highway 121 Bypass, Suite 100, Lewisville, TX 75067 NTFN NMLS 75333.