Let’s face it: It’s tough being an aspiring home buyer right now in the United States real estate market.
First, it’s basically a seller’s market which means prices are sky high and competition is at an equally historic level.
While there are some programs out there to help buyers, they don’t seem to be equipped to handle the current situation where houses sometimes are listed for a few hours before being sold – and often with an all-cash offer to boot.
If you’re wondering how you can be competitive in the red-hot real estate market this summer, here are five things you should consider:
Work with a Specialist
First, we recommend you work with an expert like a real estate agent. From knowing how to navigate the market to finding the houses that suit your needs, agents can really cut through the huge number of options out there and find those that are best suited for you. Agents can also help you with your purchase strategy as well as how to approach making an offer on a house.
Having a good banker that you have an established relationship with is also vital to knowing what you can afford and what would fit your needs. Bankers have a wealth of knowledge and tools that homebuyers aren’t even aware of. They can be an make or break person on your team to homeownership.
Additionally, some individuals may be better suited to work with companies like Set You Rent who can offer additional financing and sometimes obtain a specific home more easily. We too work with a team of people who can help you navigate this difficult market.
Be the First in the Door
Being the first to make an offer on a house is pretty much the only way to get a home in some really hot markets. But this doesn’t mean that you literally have to be the first person to view or make an offer on the home; rather, this advice is about being there when opportunity strikes. That means that you are prepared to make an offer when you see a home and follow through with it.
Being one of the first also requires to be prepared to make that offer, so make sure everything is prepared. Talk to your team to see what additional steps you may need to make.
Making big decisions can be very difficult and that sometimes hinders your opportunities. Just as you prepare finances and paperwork you also need to prepare emotionally and mentally to prepare to be a homeowner and make daunting decisions.
Don’t look at houses unless you’re pre-approved for a loan. Not only will this determine how much of a house you can buy but also it will make any offer you table immediately viable.
Think of it this way: Why should a seller wait for you to obtain loan approval after you’ve decided you want to buy their home?
They have to trust that you will get approved and make a bet that no other buyer would be interested in their property or even pay more than you have offered. When coupled together, these factors make it very tough for buyers who don’t do their homework to make viable offers in a booming market.
Quick Tip: Pre-Approved and Pre-Qualified mean two things and your bank can help you with being approved instead of qualified.
Make an All-Cash Offer
Of course, nothing makes a statement quite like an all-cash offer. It also lessens the logistics needed to make a deal happen. Still, this is not something most buyers can do. And it helps to keep in mind that, in some really popular markets, an all-cash offer doesn’t really get a seller’s attention.
This is mainly because most offers are backed by pre-approved funding as discussed above. In other words, the seller doesn’t really care about where the money comes from at the end of the day so long as they get what they want for their property.
One option that eliminates that time pressure associated with a booming market as well as the need for a huge down payment, then lease to own might be the solution for you. There is a range of options that lets buyers get the home of their dreams without sacrificing their capital or saddling up to a huge, burdensome loan.
RESEARCH LINK: https://www.mashvisor.com/blog/lease-to-own-pros-cons/