We’re in a hot seller’s market in Southern New England. As a house hunter, do you have visions of walking into your new dream home, falling in love with everything about it, and making a reasonable offer that gets accepted right away? Stop that thinking now. In real estate, competition is real, especially in a strong seller’s market. To help you achieve your real estate dreams, we’ve put together our best tips of advice to get you into the home you love now:
Do Research, Be Prepared & Be Patient.
The simple fact of the matter is that property listings in popular neighborhoods are often few and far between, especially in a seller’s market. This means that in a buyer’s market or a seller’s market, nice homes in sought-after locations will generally sell faster. Now add the pressure of low housing inventory in your area to the need for a desirable location and you are likely to see some stiff homebuying competition coming your way. Keeping this in mind, if you have your heart set on buying in a desirable location in a seller’s market, starting your house hunt early and having patience are key factors to a successful home search.
A great real estate team, such as Noonan Lombardi Realtors, will help with vital property information and timelines, such as property reports, disclosures and offer due dates. Our realtors will also take note of upcoming open house dates, or arrange a private house showing. No matter the scheduling, be sure to remain flexible regarding showings, because in hot real estate market, properties wait for no one. The sooner you see a home when it comes on the market, the faster you can make an offer before other home buyers ever see it.
Have Proof of Funds & Pre-Approval.
This is especially important information for any first-time homebuyers out there. Being prepared means understanding that when the moment comes to make an offer on a house for sale with big competition, you will need to act quickly. Your best defense is being informed and knowledgeable, which means having your mortgage pre-approval ready and your ability to make an offer on your new home happen fast. Working with an experienced realtor, like Noonan Lombardi Realtors, who can guide you through a competitive home buying process is also highly valuable, especially in a seller’s market.
Often-times, when you have seen a property and you want to make an offer, speed is the name of the game. For a real seller’s market in a desirable neighborhood, it is entirely possible you could only have a day or two to get your offer submitted after viewing the home. Sometimes, you even get notified that offers are being accepted as “highest & best”. This means you really need to come back with the highest price you will pay for the home, as well as the best terms you are prepared to offer, which is your best total offer. Why do home sellers do this? Generally, it is because a home seller has received multiple offers on their house for sale and rather than negotiate with all home buyers, they reply with “highest & best” and then make a final decision. The pressure is real people and to be fully prepared and “offer ready” when you find the property you want, it is crucial to have any supplemental paperwork, like your mortgage pre-approval and proof of funds for the down payment, ready to go.
In a Seller’s Market – Keep it Simple.
If you have ever purchased a home previously, you probably remember adding contingencies or home fixes to the offer you are submitting. You might have even requested closing costs be included in the offer. In fact, a majority of home purchases include some variation of contingencies. Contingencies could include things like completing home inspections, fixing a detail of the home prior to purchase, receiving a mortgage commitment, etc. However, in a seller’s market, the more contingencies you add, the less likely a home seller will probably be to choose your offer. In high competition real estate markets, concessions will have to be made in order to get what you want. That’s the cold hard truth. A “clean” offer with good financial backing will win in most situations where home buyer competition is stiff.
If submitting a “clean” offer on a highly desirable property leaves you feeling underwhelmed, our best advice is to wait and jump on another opportunity. When you are ready to submit a home purchase offer, it’s really vital to have already considered your maximum financial investment capabilities, as well as what compromises you feel comfortable making and adversely, which ones you do not feel comfortable with.
Why Choose Noonan Lombardi Realtors for your Real Estate Needs?
It can feel overwhelming shopping for a home amongst fierce competition, but don’t be discouraged. With the right amount of preparation and working with the right real estate team for you, you’ll be ready to make the necessary moves to secure the home of your dreams.
Noonan Lombardi Realtors operates one of the most successful real estate teams for home sales, home purchases, property management, and rentals in Rhode Island, Connecticut, and Massachusetts. Our advertising and social media presence are second to none, giving each client the backing of exceptionally experienced Realtors waiting to work with you. Call Noonan Lombardi Realtors today (401) 580-8672.