How To Stand Out When Buying a Home in Yet Another Competitive Spring Market
by VIBE Realty
on Friday, February 11th, 2022 at 8:55am.
Last year’s article from our very own Susan Bonne was so good we're pressing the repeat button. The real estate market is even more competitive than this time last year, we knew we had to reshare these helpful and even more relevant insights! If you’re in the middle of buying a home right now, or are thinking about getting the process started - this one's for you!
You’ve likely been hearing, from every rooftop, that we are in the hottest seller’s market in a generation. That listings are scarcer than hen’s teeth. And that buyers have to pay thousands over asking, and throw in homemade cookies, a puppy and maybe a Tesla to be the winning bid and secure a new home. Yes, it’s more than a typical real estate frenzy, and multiple offers on desirable properties in affordable price ranges are the norm rather than the exception.
While we know the 2021 real estate market brought many new firsts (record-setting inventory lows, substantial average price increases, and single digit average days on market) the beginning of the 2022 market really isn’t shaping up to be much different. This winter is on track to be one of the most competitive markets yet.
So what’s a savvy buyer to do? How do you give yourself the best possible chance of winning when you’re working within a set budget, potential time constraints, and the many unknowns in the process, not the least of which is, what is everyone else going to offer?
That’s where we come in. The first thing to know is that there are strategies that can help to increase your odds in a tough market. We’ll look at all the angles with you, leveraging your lender and closing team as needed, to position your offer in the very best way possible, no matter what price range you’re in.
And speaking of price, the highest bid doesn’t always win. Every offer includes a variety of components, including financing, earnest money, closing timeframes and various contingencies, all of which can impact a seller’s decision. That’s because, like buyers, sellers have different needs and priorities. One may want a quick close above all else; another may need to rent back their home from a buyer after closing while they wait for their new-build home to be finished. Tailoring offers to meet seller motivations is one way to stand apart from the rest.
What an offer doesn’t include can also make a difference. For example, you may have read that many buyers are forgoing inspections to beat out the competition. We don’t generally recommend that, and it’s worth noting that an inspection can protect both buyers and sellers post-sale. But there are occasions when waiving an inspection can make sense. Other options include streamlined versions, pre-booking and/or agreeing to take on minor repairs – all tactics that can win you points while still shielding you from potential big-ticket repairs down the road.
Sometimes it’s as simple as not looking at homes at the very top of your range, so you can make a compelling offer within your budget. Or, considering a home that may need a bit of work. The majority of buyers gravitate to those beautifully-updated-and-perfectly-staged homes worthy of a magazine shoot. But if you offer on a home that’s less than pristine, you can take the considerable savings and invest in upgrades of your own choosing.
However you approach the current market challenges, remember that having a VIBE agent at your side can make all the difference. While there’s a chance it may take longer than you first expected, hopefully we’ll be handing you the keys to your new home before you know it. And those bidding wars along the way? They’ll make great stories to tell at your first backyard barbecue—just don’t forget to invite your agent!