Top Tips to Beat Out the Competition
It’s no secret we are experiencing a red-hot seller’s market across the Bay Area. With interest rates at an all-time low and limited inventory, home shopping in 2021 can feel like trying to score a roll of toilet paper in March 2020.
This is a prerequisite for home shopping. Today’s market moves extremely quickly so it’s imperative to have your pre-approval completed before looking at any homes. Getting pre-approved not only allows you to understand your budget but provides you with the purchasing power to write an offer once you find a home you love.
Look at Homes Under Your Max Budget
Know the statistics in the neighborhoods you are shopping for. Are homes selling 10% over the list price? Then you should adjust your search parameters accordingly and look at homes 10% under your max budget. This will allow you to blow the competition away when you are in a multiple offer scenario.
Set up your listing alerts to send immediately (bonus points if your alerts include coming soon listings) when new homes hit the market and schedule a showing ASAP. Moving quickly will ensure you have adequate time to make a decision and review disclosures before an offer deadline or another buyer scoops up the house.
Tighten Up Your Offer Terms
We all know money talks; however, there are a variety of other terms you can use in addition to a strong offer price that will make your offer stand out. Shorten your contingency periods. Get your deposit in escrow in one day rather than the standard three. It’s also important to pay attention to what is motivating the seller. Do they need to sell their current house in order to buy their new home? Then check if offering them a free rent back can sweeten the deal. There’s no one size fits all approach; the key is using terms in conjunction to create an enticing offer.
The real estate market can feel frantic at times, but it’s important to try to stay patient in your home search. Find an agent you connect with to be a trusted advisor and sounding board. Write down the top 3-5 things you want in a home and carry those with you as you tour homes. Buying a home is an investment as well as the place we spend the majority of our time these days so don’t rush the process.