Buying in Today’s Market
It’s no secret that buyers face challenges. Crazy, chaotic, and impossible are some of the adjectives commonly used by prospective buyers and their agents. I won’t sugar coat reality, but allow me to state that this market simply requires understanding, preparation, and responsive strategies. To get you pointed in the right direction, I’ll touch on some topics below. Over the coming weeks, my social media and blog posts will go into more detail on these topics and more as well as offer tactics and strategies to ease pain and increase success.
Reframe the narrative.
Heading into any situation with a negative mindset does nothing positive, so let’s toss the adjectives above. Change the story, and change the results. This market is face-paced. Homes move quickly. Prepared and educated shoppers experience a calmer, more controlled market.
Prepare BEFORE you’re ready to buy.
The best time to prepare is well before you’re ready to buy a home, so start at least 3-6 months before you plan to buy. Know your credit score. Know the purchase process. Select your agent and lender. Line up your financing. Know how much cash you’ll need for closing costs, a down payment, the appraisal, the appraisal gap, inspections, and the move and set it aside with a little extra for cushion.
Interview agents.
There are many experienced, qualified, full time, professional agents. Interview several of them before committing to work with one. Your agent will walk you through the necessary preparations, provide education on market activity and trends, explain your options, help you determine value, serve as your advocate and your voice when communicating with listing agents and sellers, and work closely with you on a massive investment. Who you work with matters. Their knowledge, their experience, their cooperation, their tone, their mindset, and frankly, how well you (and others) get along with them matters.
Understand the seller’s mindset in a seller’s market.
It seems counterintuitive, but sellers feel increased pressure and anxiety in this market. I see it over and over again. With every listing, I’m answering the same intense questions, reviewing identical details, repeating tough conversations, and helping my seller clients minimize their stress. It’s easy to overlook, but understanding the seller mindset, and how it has changed as the market picked up pace, will help you address their concerns, demonstrate strength and stability as a buyer, and positively position your offer.
Know your options and design your ideal offer up front.
The purchase and sale contract provides a plethora of options. Obviously, the money is important, but there are plenty of variables that can help you possition your offer. Because this market moves quickly, it’s best to go through all of those options and design your ideal offer, your areas of potential compromise, and your hard lines before you find a home. There will be some terms that vary depending on the property, but many can be decided well in advance, allowing you to focus on the home and the purchase price, reducing the time that it takes to put together an offer and your stress when making an offer on a home.
Be patient and flexible.
Preparing, house hunting, and buying a home takes time. Don’t skip steps, communicate with your team often, and have a contingency plan if you don’t find a home within your initial timeline.