IT'S A TOUGH MARKET FOR BUYERS
It's a tough market for buyers these days. The real estate market over the past 18 months has certainly been crazy, but the past 6 months have been especially tough on buyers. With virtually no inventory and too many buyers for each home that comes up, it has gotten hairy and downright ugly at times.
DON'T GIVE UP
if you're a buyer looking for a home, don't give up. There are always homes coming on the market - slowly, these days, I know - but they do come up. And when they come up, you want to be ready. Let me rephrase that. You must be ready, or you lose out.
Your agent will guide you as to what you need in this regard.
BE PREPARED
Be prepared to move and move fast. Do your part. If you're a cash buyer, have proof of funds. If you're planning on financing your purchase, get yourself preapproved now. If your preapproval is old, get it updated.
Work with a buyer's agent. Don't calling the listing agent! They love when you call them. Why not? They collect a double commission, But remember this - the listing agent has a contract with the seller to get them the highest price. The listing agent is working for the seller. They are NOT working for you. Sure they'll handle the paperwork in many states (laws vary on this by state), but they're working for the seller. Does that make sense? Many people aren't aware of this.
WAIVING CONTINGENCIES
Work with a good buyer's agent who will explain the ins and outs of presenting a good offer in today's market. Many buyers are just waiving some or all contingencies in their contracts to get the house. That can be very risky. If you're going to waive all contingencies, make sure you understand what you're doing first.
When it comes to inspection, it's not such a great idea. You never know what you will find, unless you happen to be a contractor. The house could have major problems that won't be discovered until later on. Try shortening the inspection period to as short as you can make it, but, in my opinion, this is one contingency I wouldn't waive.
If you want to waive the appraisal contingency and you have extra cash, that's fine. For example, if you buy a house for $ 625,000 but it appraises for $ 590,000. then you would need to come up with an extra $ 35,000 to satisfy the lender. Waiving this contingency is okay as long as you have the extra cash.
Waiving the mortgage, assuming you're taking one, is risky unless you have the cash to back you up. In other words, if you are buying a home for $ 750,000 and wrote the contract up as cash but then decide to take a mortgage (which is fine), that's okay as long as you have the cash to close in case the mortgage doesn't go through.
OTHER CONSIDERATIONS
Your buyer's agent should speak with seller's agent to find out what the sellers are looking for, when they are looking to move, etc. This will help when you prepare your offer. Sellers may need an extended closing or a lease back or something else.
Will the timing work for you? Can you make it work? Sellers ask for all sorts of things these days. Some buyers are accommodating, some not. If you want the house, it's best to be as accommodating to the seller's wishes as possible.
IN SUMMARY
Will these tips always work? Sometimes yes, sometimes no. Personally, I have found this to be a very unprofessional as well as crazy market. You can do as much as you can do. Sometimes it is out of our hands. There is an old expression, If it's meant to be, it will be. I believe that.
I know it's been frustrating for many buyers. Believe me, I feel your frustration. It's frustrating for the agents as well.
But if you need a home or a condo or a villa or a townhouse and it's time to buy, then go for it. Give it a try. Because in the end, life waits for no one.
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