3 Strategic Moves for Competitive Home Buyers

As a home buyer there are actions you can take which can put you ahead of all the other buyers. It’s a competitive market, and depending how bad you want that house, you must play it smart. If you’ve been in the hunt for a couple months and have submitted multiple offers without any bite, it’s time to step your game up. The goal is to actually purchase the home you’ve been after, despite all the fun and learning experience you’ve had in the process.

When you know you’ve found your dream house, it’s time to buckle down and get serious. Getting serious means you will be uncomfortable through this ride, as well as nervous, and financially exhausted. As gloomy as this may look, take note that this is part of the course, and it will be all worth it in the end. To make it a bit easier for you, here are three strategies to give you the upper hand over other buyers.

Find out what’s important to the seller and give it to them

The seller has what you are after, so you need to figure out what it is they’re after, and deliver it on a silver platter to them.  Ask your agent what their story is, why are they selling? Are they staying in the neighborhood, or going out of town? Once you know some of their background, put yourself in their shoes and imagine what you would want.

For example, if you somehow find out they are in contract to buy a home, try tempting them with a clean sale to get it over with. Have your inspections, and appraisals completed in a week, and do away with your contingencies so the seller knows this can be a sure deal with you.

If they are trying to find a new place to live before they sell, try “renting back” after the closing. This will let them stay in the home while their money is in the bank, their debt is relieved, and they don’t feel the pressure to move out immediately.

Make your loan a non-event

In this step in the process you should be dealing with a professional mortgage agent. Hopefully your real estate agent recommended someone above the rest. The seller has no idea how big the buyer’s loan is, and by the time you make your offer, your mortgage agent should have your file updated.

At this point the only two unknowns left are the appraisal and title report, which will come soon. Make sure the seller knows how hard you’ve worked to get you loan in order, and that you are the real deal candidate. With the help and input of your mortgage, and real estate agent, make your offer non-contingent on financing. This way, you are a walking cash wad who is actually human. To protect yourself, make sure to order and complete the appraisal early on.

Overpay for the home

Yes, this does seem like some terrible advice, but most buyers usually pay top dollar in a hot market. The bidding war influences buyers to spend as much as they can for the home they want. These are the buyers who have been beaten out of the market countless times. It’s easy to see the mentality of the buyer in this scenario.

Work extra close with your agent to determine what price would give you the advantage. Buyers in hot markets find themselves in extremely competitive situations because they want what everyone else does, and it’s in a limited supply. While no one can predict the future, these are the steps to take to make it a little more clear. You’ll be glad you’ve made the effort once it’s all said and done.

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