Home Buyer Tip - "Be Prepared For Competition"

By
Real Estate Agent with RE/MAX Rancho Bernardo

Not long ago, a prospective home buyer who had no property to sell and who was financially-qualified was in the driver's seat. They had numerous properties from which to choose and most sellers were highly motivated.

No longer. Now when a nice property comes on the market, especially if it is not a short sale or bank-owned, there are frequently multiple offers and it often sells above the asking price.

If you want to purchase a home, you need anticipate that other buyers may be interested in the same property that you are. So how can you compete?

First, you should get your ducks lined up so you can make as clean an offer as possible. If you need to sell your current property so you can make a non-contingent offer, then get you property at least into escrow before you start seriously house shopping.

Unless you are a cash buyer, you will need to get a mortgage to buy your new home. It is essential that you be preapproved for a loan in advance so you can prove to the seller at the time you make an offer that financing will not be a problem.

Then, when you find a property that you really want, you should make the strongest offer that you can. Everyone wants to feel they got a bargain on the house they buy. But, considering that we are still near the bottom of the real estate market, you are probably getting a very good deal even if you pay a little more than the list price.

And if you make your best offer and still don't get it, at least you can take comfort that the buyer paid more than you were willing to pay.

Finally, you need to be patient. You will need to look at everything that matches your criteria as soon as it hits the market. If you like it, get your offer in immediately. You may even have to make offers on multiple properties at the same time.

This feeding frenzy atmosphere may make you feel uncomfortable and therefore hesitant to jump into the market. However, I think what is happening is many buyers and investors recognize that the market has bottomed out and they are trying to make their purchases before prices go up substantially.

Just remember, right now there are more willing, qualified buyers out there than there are good properties. And not everybody is going to get one.

Comments (3)

Lisa Matykiewicz
United Brokers Group - Gilbert, AZ

So true.  I have been shopping several properties all summer which the majority have ended in competitive bidding.  I finally got a great property for my buyer but you need to be prepared to make offers on the spot...and I agree clean as possible.

Sep 07, 2009 04:04 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Hope this trend continues especially since I have a nice listing inventory!

Dec 13, 2009 11:59 AM
Mario A. Reyes
Coldwell Banker - San Leandro, CA
Your real estate friend at San Francisco Bay Area

Prices of real estate are going up. Buyers know this and would obviously desire to buy before the market gets hotter. However, they are concerned about the rates of interest, excepting the cash buyers.

Additionally, the cash buyers are becoming fewer in number. Probably "burned" too by the rising prices.

Days are coming that the buyers have to face stiffer competitions. Those with good credits and deep pockets will rule.

Sep 17, 2013 06:43 AM