Strategies for Buyers in a Seller’s Market
As many Buyer's have come to experience in this frantic real estate market throughout the Sacramento region, it's a TOUGH time for Home Buyers. Most listings are getting multiple offers, well over list price, and with Buyers coughing-up the payment of most, if not all, escrow and title fees. But don't get discouraged! I've been successful with a number of Buyers in getting them well-prepared going into negotiations which has brought them success.
Here's what I recommend to my clients:
- Have a current pre-approval letter from a local lender.
- Get copies of your bank/investment statements to serve as proof of funds for your earnest money deposit and down payment.
- Write a personal letter about your family and what you appreciate about the home.
- Search for homes that are 1-2% below your maximum budget so that you can offer above-list price and still stay within your pre-approved loan amount.
- Evaluate the standard costs that Sellers & Buyers regularly pay within each county and agree to pick-up whatever cost you afford. This can often be a differentiator as it affects the Seller's Net Sheet.
- If you need additional funds for closing costs, consider offering ex: $5,000 over list price but request that the Seller provide "a $5,000 credit toward recurring and non-recurring closing costs."
- Review the standard contingency periods and shorten them to provide a sense of urgency (and security) to the Sellers. NOTE: Be sure to discuss the appraisal and loan contingency dates with your Lender.
- Have your Realtor and Lender each call the Listing Agent to "pitch" your offer.
SALE PENDING: After losing out on their first house to multiple offers well-over list price, we found, and got into contract on an even better home for Nick, Nicole and Amelia. Relocating from Louisiana to Beale Air Force Base they couldn't be happier with this spacious, like-new home in Lincoln. I showed the house via virtual FaceTime tours + inspections with family members but they finally got to see the house first-hand on Sunday (I was a bit nervous that they wouldn't like it).
