Buyer Competition Heats Up This Spring3/27/2018
From all accounts, this spring’s 2018 housing market is going to be a busy one. High buyer demand has carried over from last year and so have inventory concerns in many markets. In other words, anyone hoping to find and buy a house this spring should be prepared for buyer competition from other interested buyers. What does that mean? Well, in short, it means moving quickly and saving up some extra money to sweeten the pot, if necessary. In fact, according to a recent survey, home buyers say they are checking online listings every day and 40 percent say they’re planning to put more than 20 percent down, which is a great example of in today’s market . Other strategies buyers say they’re employing this spring to beat the buyer competition include setting price alerts and offering above asking price.
Overall, home buyers are aware of current conditions and are preparing themselves for the possibility of having to win over a home seller with an offer that exceeds all others. As evidence of this, as buyer competition heats up, just six percent of survey respondents said they are doing nothing to prepare for competition from other buyers. More here.
Do you want to increase the chances that you get a good deal on a house when you buy one without buyer compitition!?
Of course you do. Who doesn’t?
But most people go about it all wrong. They think that you have to find a desperate seller, or some overlooked, underpriced home that’s a steal.
Sure, those are ways to get a good deal, but there are always buyers waiting in the wings wanting to scoop those up if and when they appear. But most aren’t ready and able to do anything about it.
Here are 6 tips to help you be able and ready to get those deals when you find one and beat the other buyer competition .
1. Be flexible with your closing date.
This sounds so easy and simple. And it is. Many buyers simply cannot be flexible with their closing date. They need to time the closing on the sale of their home, or the end of their lease, for instance.
People selling their home are no different. This is a super common issue. And finding a buyer who can be entirely flexible is a huge benefit to a homeowner. Such a huge benefit that it can help you negotiate a better price and terms than someone who can’t be flexible.
2. Have cash.
You’ve probably heard the term “cash is king”. And it’s true, to a degree. A homeowner isn’t necessarily going to give you a steal just because you have cash…but they might if they’re in a rush, or they’ve been burned by your previous buyer competition who was turned down for a mortgage.
The weight of cash will vary from seller to seller. And, obviously, having enough cash to buy a home outright isn’t something a lot of people have. But, if you have the cash, it can certainly help.
3. Be pre-approved for a mortgage.
This is also pretty much a basic in the world of real estate. Talk to any real estate agent and they’ll tell you this is a must-have.
However, you’d be surprised at how many buyers don’t have a solid pre-approval in hand when they find a great deal. So, have that figured out and ready, so that when a good deal shows up, you’re ready to roll.
4. Be ready to jump before your other buyer competition.
Oddly, a lot of buyers looking for a good deal feel like it makes sense to wait a bit once they find a good deal. Let the owner stew a little bit, and come begging for an offer.
That can work…
It can also cost you a great deal. All it takes is someone else coming across the deal and scooping it up before you even make an offer. In the least, it can create a bidding war between you and someone else…and then it might not be such a deal anymore.
Another thing many deal-seekers do is wait to see if a better deal comes around. Deals don’t necessarily come around every day…or week…or month. Maybe not even that many in a year.
So, don’t wait. Go after a deal when you see it.
5. Go after houses that have been on the market for a long time.
So many buyers ignore houses that have been sitting on the market for a long time. They often think something must be wrong with the house, or feel like the owner isn’t going to listen to lower offers…so why waste their time.
But, those are great opportunities.
Those sellers are most likely desperate for anyone to simply come see the house, let alone make an offer. Sure, they aren’t necessarily going to love you coming in with a low offer. But, since most buyers are ignoring the house, and it’s been on for quite some time, the chances of you having any competition are slim. So, you can take more time negotiating the best deal possible.
6. Don’t have multiple real estate agents looking for you.
So many buyers who are specifically looking for a great deal feel like it makes sense to have as many agents looking out for deals for them as possible.
This backfires. All it leads to is a bunch of agents who’re halfheartedly looking for you. Agents will figure out if you have other agents looking for you as well, and will likely not pay you the attention you need if you’re going to get the best deal.
Be loyal to one, rather than having a bunch of half-looking, half-caring agents. Be all in.
Your loyalty and commitment to the agent and the process of finding and buying a great deal will pay off.
The best way to find and get yourself a great real estate deal is to be ready to beat your other buyer comptition. So many people just go around saying, “Got any hot deals?” to every real estate agent they come across.
However, they aren’t actually able and ready when and if the time comes. Or they think that it’s about driving a hard bargain when negotiating, or playing some sort of game with the seller.
Nope. The best way to get a deal is to be a solid, ready, and able buyer, who can give sellers something beyond a higher price.