If competition is a buyer’s biggest concern, for goodness’ sake, get in the game. In a new survey of close to a thousand home buyers conducted by Redfin, affordability is still the number one concern but due to low inventories, competition from other buyers is moving its way up the poll.
26% identified affordability while 19% mentioned competition and 15% mentioned low inventory as their respective top concerns.
To win, athletes study the competition to come up with a plan and buying a home is not different.
- Ask what terms are important to the seller before you write the offer.
- Once you decide to make an offer, do it as fast as you can, hopefully, to be the only one the seller is considering.
- Make a good (or possibly, your best) offer in the beginning; you may never get a chance at improving it. In highly competitive situations, offer above the list price.
- Attach your pre-approval letter from a respected lender. This means you’ll need to get pre-approved before you even think about writing an offer.
- Have your lender call the listing agent to reassure them of your ability to qualify.
- Include a higher than normal amount of earnest money to show you are serious.
- Eliminate unnecessary contingencies.
- Write a personal, hand-written letter telling the seller what you like about their home and why you want it. Consider including pictures of your family.
- Minimize seller expenses paid for the benefit of the buyer.
- Shorten inspection times.
- Don’t ask for personal property.
- Be flexible on closing dates to accommodate the seller’s move.