How can buyers compete in today’s real estate? That’s the question being ask more and more by buyers near and far. It only takes a couple of offers not accepted to generate that response. When you have multiple offers on nearly every home that hits the market, there will be many unhappy prospects that miss out and will have to wait for the next opportunity. This market is not for the weak-hearted, only the strong survive. Even with what appears to be a never-ending supply of buyers, there are still many buyers that have decided to postpone buying and wait for the market to calm down and for more inventory to come on the market.
There are two problems with that last approach. The chances of inventory increasing enough to make supply outweigh demand is slim to none. The other point that should concern these buyers are property values are not stabilizing, they are still in an upward trajectory. The mind-set these fence sitters should consider is making adjustments to the strategy they used that made them lose the last property they bid on.
It’s difficult for buyers in general, but especially first-timers to give up their contingencies or protective devices. Unfortunately, that’s real estate as we now know it. When you have 25% or more of the homes selling with all cash offers, buyers that are obtaining a loan can only compete by giving up their appraisal and or loan contingencies. That’s a scary proposition for some, but just the way homes are now being bought. The correct sequence should be getting pre approved for a loan first before making an offer. If you take that step, removing the loan contingency should not be a big concern.
You still have that all important inspection contingency, right, no that’s something else that might have to go. Our purchase contracts allow 17 days for buyers to investigate the property. That is way more time than is actually needed. Lowering that to 7 or 10 days might be the difference in getting that home or losing out to a more motivated buyer. Sellers are in complete control when there are five prospects that want their home at the same time. Everything else being equal, giving up those contingencies could make a difference in moving into your new home or getting back on the fence. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view local area homes for sale in Davis, California and the surrounding communities.