After a jittery start to the real estate market at the beginning of the pandemic, new trends are emerging.
Sellers have the upper hand in negotiations as home sales and housing demand continue to rise.
Fannie Mae reports that for the second consecutive month, the home purchase index gained 3.5 points. The index tracks home buyer and seller sentiment.
Results from August show two things: a confident seller and buyer. The seller, however, has a slight advantage, according to a survey that measured consumers’ confidence in getting what they want out of the market.
The percentage of respondents who believe now is a good time to sell shot up to 56%, up by 8% in the month of September.
Given the strong buyer demand and other data supporting sellers, some borrowers may feel a little intimidated.
Buying a home is a challenge given the complexities of financing, but the hyperactive market is not a reason to hold off.
The following five tactics will help future homeowners regain confidence and standout in today’s market.
Think about contingencies
As a buyer, you can waive certain contingencies to speed up the sales process and enter escrow sooner than projected.
For instance, you can target to get rid of the appraisal contingency, which puts the responsibility on you for making up any difference if the home doesn’t appraise as expected.
Show why you’re the right buyer
Sellers are attached to their home sentimentally.
Yes, they want to garner top dollar for their property, but they can also be swayed by their impressions of you.
Demonstrate your family’s commitment to care for and love the home with a personal note to the seller. Just a few words can go a long way.
Inspect without delay
There’s leeway for when you can do an inspection.
However, show your willingness to work efficiently by scheduling one as soon as you’re in contract.
Buyers will appreciate your initiative for speed and may reward you when other steps or issues in the process come up.
Present strongest offer first
Once you find the perfect home, you’ll know it.
In consultation with your real estate agent, it’s important to make your strongest offer first, leaving nothing to chance.
And if you think you want to start off by presenting a low offer, you may be wasting your time in today’s market.
Use PMR FastTrac
Applying for a loan is a process, but it shouldn’t take up precious time or take you out of the game.
With PMR’s exclusive FastTrac Approval System, you can get underwriting approval within 48 hours after you submit your initial application.
This rapid approval gives you the financial details about your loan so you can submit a serious offer before the rest.