Q: What’s the Best Strategy for Today’s Buyers? - realestateexperts.net
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Here are three tips that will help you craft a winning strategy as a buyer.

 

Our real estate market is red-hot, and even homes that still need a little work done are generating multiple offers and selling for far over list price. As a buyer, you absolutely must sit down with your agent and come up with a plan of attack before shopping for homes. 

“You need to adjust your thinking and look in a lower price range so you can be competitive as a buyer.”

What’s the best strategy to get the home you want? Here are a few important tips to consider:

1. Do not look at the top of your price range. Considering that homes are selling for $10,000 to $50,000 over list price, you need to adjust your thinking and look in a lower price range so you can actually be competitive as a buyer. 

2. Put down a significant amount of due diligence money. Also, shorten your due diligence period as much as possible. Better yet, make a strong offer with no due diligence period at all (which basically means you’re buying the house as is). If you want to better understand the North Carolina Residential Real Estate Purchase and Sale Agreement and terms like ‘due diligence period,’ please refer to previous videos I’ve done on this subject. 

3. Consider waiving the appraisal contingency. With homes being bid up so high, more and more sellers want buyers to waive the appraisal contingency. As a reminder, when you use a loan to buy a house, the loan is based on whichever number is lower: the purchase price or the appraised value. If the appraisal comes in lower, you as the buyer have to make up the difference. I’m seeing a lot of buyers waiving their appraisal contingency, but thankfully, I’m also seeing a lot of appraisers making their appraisals work. They understand that our market is defined by buyers’ willingness to pay, and they’re going out and finding the comps to make transactions work. 

Aside from these tips, the best advice I can give you is to create a winner’s mindset for yourself. That way, you can go out and win!

If you’d like to know more about how to compete as a buyer in a seller’s market or have any other real estate questions, don’t hesitate to reach out to me. I’d love to speak with you.