Ready to move? Need a bigger house after being stuck in yours for so long?
Ya, me too… And I just bought my house in November!
Add in the fact that mortgage interest rates are at their lowest in history and… Ya, lot’s of people wanting to buy a house right now.
So let’s dig into some simple tips to help you become a competitive buyer while keeping you and your family safe!
Table of Contents
How To Be a Competitive Buyer in a Sellers Market
It’s no secret, homes are selling like crazy right now. In fact, as I sit here at my home office writing this, the house for sale down the street from me is being inspected after being on the market for 2 days!
So with houses moving so fast, how do can you stand out as a buyer when there are so many others fighting for the same house you are?
1- Be there first. The best thing you can do is be the first offer on the table.
I have seen this happen time and time again. Be the first to present the seller with what they are looking for and avoid the bidding war.
But being the first offer on the table also requires you to be the first one who knows the house is for sale.
This is why we created the Friday Preview Club. It gives our clients exclusive access to houses before they go live on the market!
And if you want to see houses before they go live on the market, all you need to do is >click here to apply<.
That way you can see house before they go live on the market!
2 – Negotiate wisely – One of the most common problems I see with buyers is wanting to get a good deal on the house right out the gate.
Now, this can be a good strategy in a buyers market (where there are more houses available than buyers) or if the house has been on the market for a really long time.
But in a sellers market (like we are currently seeing in the Houston Real Estate market) it can better to present a strong offer first and then re-negotiate after the inspection (during your option period).
Only do this on houses you really want though. At this point in the home buying process you’ve got some skin in the game and will loose several hundred dollars if you decide to back out. So there is some risk involved.
But on the other hand, you are now at a stronger point of negotiation. At first, the seller held all the cards (with potentially multiple offers) but now that you have a signed contract and have inspected the home, you hold more of the negotiation cards.
This means the seller will be more inclined to negotiate with you because their other option is to go back to the market looking for another buyer.
Plus now that the home has been inspected, the seller will have to disclose any issues you found to other buyers.
3 – Offer favorable Terms. More goes into buying a house than how much you are willing to buy the house for.
Sellers also want to know how soon can you close? Do you want them to spend money on a Survey or Home Warranty? What about Sellers Assistance for closing? Do you want the Washer/Dryer and Fridge?
And how long do you want the Option Period to last so you can get the home inspected? This is the period of time you purchase from the seller (usually $100-$150) that gives you the right to back out for whatever reason you want.
This can be scary for a seller, what if you find a better house? Or there is something wrong in the inspection and you as the buyer don’t want to deal with it?
This kinda goes back to negotiation tactics, but you can also see how a contact with more favorable terms might win in a seller’s mind.
4 – Be Pre-Approved. There is a big difference between being pre-qualified and Pre-approved. And even more of a difference between being pre-qualified and “I haven’t even talked with a lender yet.”
Most sellers will not look at an offer if the buyer is not pre-approved or pre-qualified.
So if you have not talked with a lender yet, make sure you check out our recommended lenders. They come highly recommended by our past clients.
Keeping Safe from Covid-19 While Searching for a Home
Buying a home during the Covid-19 crisis can be a challenge for sure.
As numbers continue to increase, your personal safety is paramount.
And just like almost every industry that can, we have adapted our home buying practice to help keep you safe too!
1 – View Houses Virtually. You don’t need to spend all day looking at houses (although it can defiantly be fun). We can actually do that for you while you stay at home.
When you find a house you like, we can go out and do a virtual showing using an app like Facetime or Zoom. That way you can see the house from the comfort of your own home.
And then, if you really like the house, we can set up a second showing so you can see the house in person.
So instead of seeing several houses, you only need to go see one. Not only will this save you time but it will also limit your opportunities to catch the virus.
All you need to get started is the KW app (which you can download here).
Which actually leads me to #2…
2 – Make use of the KW App. One of my tasks as a Houston real estate agent is to stay on top of the best tech resources.
That way I can make the best recommendations to my clients. And this app wins in so many different ways.
Not only does it give you the ability to schedule virtual tours, it gives you access to information you wont find on any other real estate app.
It is like getting access to the secret party room were all the cool people are. Except it is a real estate app. … Don’t judge me for that analogy, it works… kinda…
Anyways… The app is powered by data from the Nextdoor app and Google. Here is the information you get on the KW app that isn’t available anywhere else:
- Local Insights to the neighborhood and local amenities from the people who live there
- The ability to create custom searches and easily share them with a co-buyer, friend or your agent
- A Dynamic Map that allows you to add a pinpoint search or draw a perimeter to find the right home
- The ability to find the local schools (and what people think of those schools)
- Buying (and selling) guides to break down each step of the buying (and selling) process.
- Instant access to our ZeroPlus Program.
You can download it on the App Store on Google Play by clicking here.
3 – Is it a good time because interest rates are low? Or will the housing market crash, meaning buyers should wait?
Well, that is really tough to answer and it will be different for everyone.
So let’s start off with what we do know. If you find the right house and you have a steady job, why wouldn’t you?
Buying a house with a low interest rate will not only lower your monthly payments but will save you THOUSANDS over the course of your mortgage. So if it seems wise, give us a call (or text) and let’s talk about it: (832) 447-1231
I strongly recommend talking with a lending and getting your interest rate locked in while they are low. Check out our recommended local lenders here.
But on the other hand, if you are on the fence about buying a new home, that doesn’t mean you shouldn’t be looking for the right house, just be careful and know your limits.
If the market does crash, there will likely be some sort of protection for you and a homeowner.
Now, to be clear, I am not advocating that you by a house without counting the costs and the risks. But if you remember back to March the government was a lot quicker to help homeowners than renters…
And if you are still not sure, reach out to a us or a lender and ask some questions. We can take a look at your finances and give you honest guidance to help you move forward.
Final Thoughts
When you are buying a house, it is always wise to count the costs and risks. And now more than ever.
But we are here to help you weigh the pro and cons of purchasing right now. Give us a call (or text: 832-477-1231) or reach out to one of our recommended lenders.