If you have been watching the real estate market in the Reno area recently, you’ve probably heard about the current shortage of housing inventory and the associated run-up of prices. For those interested in purchasing now, the situation is challenging and can be downright frustrating. The following recommendations are strategies that will give you a bit of a leg-up in a hot market:
- Don’t get pre-qualified, get pre-approved. A pre-qualification is based on a credit check, while a pre-approval means the lender has verified the income and assets of that buyer. The additional step shows the seller that the buyer is serious, and could put that buyer at the head of the line in a multiple-offer situation. Choose a very responsive local lender. This is no time for waiting on a call or email from across the country.
- Know the market. In a seller’s market with rising prices, desirable homes are often snapped up within a day or two of listing, leaving those who “need some time to think” out in the cold. The time to do the thinking is before the house comes on the market, so the buyer is prepared when the ideal house is listed. Know the area(s) that you are interested in so you are comfortable when you find a good one. Ask your agent to review recent closed sales data as well as homes currently under contract, within your search parameters. How much have prices moved in the past 90 days? Are selling prices higher than asking prices in the neighborhood? How many days (sometimes hours) from list to contract? This research will allow you to make informed choices when forced to make quick decisions.
- Don’t wait for the weekend. Most agents have a system available that will notify buyers of new listings the moment they hit the MLS. Your ability to get out and look at homes quickly is advantageous. Your agent should be equally responsive and flexible.
- Reputation matters. Find an agent known for being hard-working, knowledgeable and trustworthy with excellent follow-through. This may add some credibility to your offer in a multiple-offer situation. Additionally, experienced agents with a collaborative approach will have good questions for the listing agent which will help the buyer be better-prepared when writing an offer.
- New advances in technology help speed things along. Tech-savvy agents capable of managing the transaction with remote signatures, delivery, and online meetings can save buyers precious time, getting the job done and submitted quickly. The ability to create and submit your offer within a few hours can make or break the deal in some cases.
- If it seems like the right house, be prepared to offer full price… or more. The disappointment people are feeling when missing out on a purchase has a new name; non-buyer’s remorse. When you find yourself in a multiple offer position with the right house for you and a price that is fair based on the research, then give it your best shot. You may only have one chance for your offer to be seen, put your highest and best offer forward first.
- Give, don’t ask for concessions. Each offer will most likely be viewed in its entirety, meaning every time a buyer makes demands they are each weighed against those in other offers. Putting together a fair and tidy offer will put you ahead of the pack. Don’t get hung up on small details.
Knowing what you are up against, doing your homework, and choosing an experienced buyer’s agent to represent you are the keys to success. Give us a call; we would love to help you find your new home!
Photo credits (From Flickr via Creative Commons License):
Desert by Moyan Brenn
door key by woodleywonderworks