Are you looking to buy a house in today’s crazy market but don’t know what to expect during the process? In this episode of The Perfect Balance, I’m going to give you the lowdown truth on what to expect if you’re buying a house today. I’ll explain why buyers need to stand out from the crowd to get their contract accepted and help you discover how to do it.

Buying A Home In Today’s Market

Today’s market is a lit bit crazy. Many properties are going under contract quickly, often with multiple offers, and selling above listing price. To get a leg up on the competition, consider these tips for helping buyers put their best foot forward in this increasingly common scenario.

One, you should be prepared to possibly pay more. With such a limited supply but no decrease in demand, home prices have been rising in most Texas markets. In our current market, people are paying $10,000 to $100,000 over list price.

You also want to be prepared for the possibility to pay out of pocket. Since lenders approve loans based on the appraised value of the property, buyers may need to close the gap between what they can borrow and the price of their offer. Ask for these expectations by seeing the most recent sales information, and make sure you understand the appraisal attendance.

It’s also important that buyers understand that third party financing addendum and the addendum concerning right to terminate due to lenders appraisal. Knowing ahead of time how these provisions on these forms work can help buyers make a faster choice about how they want to structure their offer. It also helps them decide what protections they want in place pending the outcome of the appraisal.


Getting Prequalified And Moving Fast

Another thing you can do to stand out among the competition is to get prequalified. Sellers like offers from prequalified buyers because these buyers have already contacted the lender to see how much money they might be eligible to borrow. For those buyers able to do, cash offers are another attractive alternative to sellers. Because these are easier than more complex financial arrangements, be ready to move quickly.

Texas homes spent an average of 48 days on the market into January 2021, though many properties are selling much faster than that. Buyers should know exactly what they’re looking for so they can make offers quickly. If their offer isn’t selected, buyers need to be able to move on just as quickly.


Appealing To The Seller

Be accommodating to the seller to stand out from the crowd. Make sure your offer has fewer demands of the seller. Each request is one more reason the seller might choose a different offer. You can forego asking for closing costs or seller concessions and can even offer to pay the owner’s title policy or title insurance.

Earnest money amounts can help. Buyers who commit to more earnest money show the sellers they are serious about buying the property. Don’t overlook option money, either. Offering more option money may be even more attractive to sellers than a higher amount of earnest money. The option money goes towards the seller even if the buyer terminates, which can be enticing.


Getting Your Dream Home

Buying a house in a seller’s market can be difficult, but just be patient and the right one will come along. It’s important to understand the tips outlined here so you have the best possible outcome. If you have any additional questions about the buying or the mortgage process, I’d be happy to chat. Make sure to reach out to me and I’ll be glad to connect!