Friday, April 17, 2015

How to Buy the Home that you Want (in today's crazy market)

The key to that is in the parenthesis . . . (in today's crazy market)!  Now 40+ years into this business, I've realized that every market is a crazy market.  Just a couple of years ago, we couldn't sell most of the listings we took and ended up renting them.  Or sellers paid large amounts of cash to "dump" their homes at prices below what they owed on them.  In the early 1980's, interest rates climbed to 18.5% (so you might as well charge your home on your MasterCharge card).

This past weekend, one of our buyer agents helped a customer submit an offer on a new listing, only to find out that ours was one of sixteen offers received!

Now, do those actual scenarios define "crazy market" for you?

The available inventory of homes (that people want) is extremely low.  Sure, you can purchase a new home or get one built easily.  The builders have plenty . . . at never-before-seen-prices!  I was at a builder "grand opening" party yesterday and toured some beautiful 2,500 square foot homes starting at $350,000 . . . in Pearland.  Considering that its resale counterpart would sell for about $250,000, I'd say that is significant.  But . . . that resale opportunity comes up about once per week, and gets multiple offers right off the bat.  So how do you actually buy one?

First and foremost, get a qualified Realtor to represent you by entering into a "Buyer Representation Agreement" with the agent.

Second, listen to that agent.  He or she will certainly give you the right advice to make the successful offer.

Third, eliminate as many "contingencies" as possible with the offer.

Fourth, increase your Earnest Money Deposit, shorten your "option period," and submit a "quality" pre-approval letter from a bonafide lender.  ("Bonafide" lender doesn't mean the one with the biggest name, but the one who is known by Realtors as the lender who gets the job done timely.)

Fifth, you may need to increase your offer over the list price, as many homes today sell above asking price due to the low supply and high demand.

Some other good tips exist like writing letters to the seller to be presented with your offer explaining how you've "bonded" with their home, etc.  Your quality agent should be able to help you with all the fine tuning details to help you best.

Last but not least, don't wait.  Get into the market and get your piece of The American Dream. Homeownership is alive and well and waiting for you!

Want quality representation?  The Buyers Agents of TheSamTeam work together 7-days-a-week to help each and every buyer with their unique needs and real estate aspirations.  And we'd love to help you, too.  Call us at 832-200-5656.  RE/MAX Top Realty.