If you want to survive as a buyer in our competitive market, there are three tips you must remember:
1. Understand your price point and the available inventory in that price point.
In the more affordable price points (e.g., $200,000 to $250,000), it’s a complete frenzy with very little available inventory. With our buyers, we like to examine how many homes are available in their price point and in the area they’re looking at versus how many homes are under contract and have been sold in the past 30 days. This gives us an indication of how quickly the available homes will sell and helps us prepare accordingly.
2. Have your financing 100% ready to go.
Have your pre-qualification letter handy and be absolutely certain about which loan program you’ll use when it’s time to make an offer. This enables your lender to call the listing agent and assure them that they have all of your documentation and that you’ll be able to process the transaction and close on time.
3. Make your offer competitive.
As I alluded above, in a typical buyer’s market like we have here in the East Valley, any price point under $400,000 is very competitive. This means it’s imperative for you to offer the seller what they’re looking for. Sellers are usually listing their homes at market value, but those homes are often selling $5,000 to $10,000 above asking price, so you have to be comfortable with that. If you find a home you can see your family living in, that’s a small price to pay compared to renting for another year. Take each home you’re interested in into consideration before deciding what to offer, and remember that it may take a few tries to lock down a contract.
If you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’m here to help.
