How NOT to Lose Your MIND or CHANCE in a Buyer's Market!
Updated: Jan 15, 2019
This is Nashville, people. 5 Steps. Read them. Commit to them. Win the bid!
Take it from hobby to hunting! If you want to buy a home in this market, you must commit to the process and make it a priority – not a weekend hobby. If you are only looking at houses at your convenience, you are probably wasting your time. If you see a home online that you would strongly consider, make an appointment to view it asap. Unable to physically make it? Have your agent do a video walk thru with you.
Get pre-approved. No sane seller will accept an offer without a pre-approval letter. There are too many buyers out there to waste time on folks who may not be financially positioned to buy right now. If you are not yet pre-approved, get with a LOCAL LENDER or ask your agent for a referral.
Minimize the “asks.” When purchasing a home with a loan, there are standard contingencies such as appraisal, financing approval and inspections. A cash offer may come in with no contingencies. A seller will be more motivated to accept an offer if the buyers appear to be easy to work with and there is potential for a smooth transaction.
Don’t play hardball. In a seller’s market, especially in a more sought-after price point, the buyer has little leverage to negotiate. Don’t waste your time with a low-ball offer if the home is reasonably priced. You may end up offending the seller. If you truly want the home and it has had a good amount of activity, submit an aggressive offer that you can live with financially and that may win the bid.
Have your ducks firmly lined up in a row. If you plan on buying an existing home that is owner-occupied, plan on assuming the closing costs yourself (approximately 3% of the purchase price). If you are looking at new construction, ask them about their lender referral programs in which a percentage or all the closing costs are paid by the builder. Regardless, speak with your lender to see how much money you will need in either scenario along with the down payment so there are no surprises.
Or better yet, call me and let's get this done!