Even though I love what I do in the financial industry, I have always had an adoration for real estate. I enjoy perusing new listings, checking out open houses, and imagining the possibilities! Lately, this has been harder to do because of extremely low inventory across Utah—and in much of the country.
Anyone looking to purchase a home right now is facing not only fewer homes to choose from, but also astronomical prices, short time on the market, and rising interest rates. So, what can you do to stand out in the crowd? Try these strategies:
Come in with your best offer
When housing prices are on the rise, most sellers won’t settle for anything below asking price. In areas experiencing sustained low inventory, offers can often skyrocket well beyond the asking price. Look at your finances, speak with your realtor and come in with your strongest offer up-front.
Get preapproved
In a competitive market, sellers often reject offers that don’t come with a preapproval. Preapproval shows how much a lender is willing to give and helps you stand out in a sea of good offers. Letting sellers know you’re prepared and ready to go can bump you to the top of the stack.
Be flexible
With inventory so low, you don’t have the luxury of waiting for the perfect home. Consider properties that may not include everything you want. Think about looking in a different city. If you have the opportunity to work remotely, proximity to a physical workplace may not be a factor. Or maybe you can make do with three bedrooms instead of four.
Maybe it comes down to a concession you can offer the seller. If the seller needs to close quickly or needs additional time in the home, your flexibility could help you win the bid.
Right now, if a home checks off most of your boxes, and the missing items on your wish list can either be added later or you can live without them, put in an offer! Chances are the property won’t last long.
Get personal
Take cues from the features of the home you’re considering to help you determine what’s important to the seller. Compliment the décor and find ways to connect. Is there a chef’s kitchen? Remark on how much you love to cook. A basketball hoop in the driveway? Mention how you love to play hoops with your growing family after dinner. This is an authentic way to let the sellers know you’ll care for the property just as they have.
There’s no doubt this is a challenging time for homebuyers. Scoring a new home may take some new tactics you’ve never thought about before but it’s still possible.