First, research is more critically
important than ever in this market.
Buyers need to work with an agent who has access to the current database
of comparable homes for sale and comparable homes sold. Those free public databases like Zillow and
Trulia won’t help you here because they are neither current nor complete. When a buyer identifies a home he or she is
interested in, the agent should prepare a quick “Comparative Market
Analysis”
of the home to see what else is currently available, and even more importantly,
what comparable nearby homes have recently sold for. If the listing price of the home you are
interested in is unrealistically high, make an offer that makes sense in the
context of “the comps.” If that means
you lose the home to other interested buyers, so be it. Let them overpay for the home and move on. Don’t get caught up in the frenzy of buyers
competing to get a home under contract at any cost. Set a ceiling price above which you will not
go.
Secondly, make sure you are prepared to
make an offer. This involves getting
preapproved for the mortgage financing you will need. Not only does this give you some certainty on
what sort of home you can truly afford, it also results in the issuance of a “Pre-approval
Letter”
by your lender. This letter can then be
attached to any offer made, and this tells the seller they are dealing with
someone who is serious-- ready, willing and able to close the purchase.
Third, be ready to move quickly when you
have identified a property that makes sense.
You and your agent have done your research, and you are armed with your
Preapproval Letter. With inventory as
low as it currently is, when a home enters the market at a reasonable price,
you should be aware that you are likely not
the only buyer who has noticed it.
Try to get out to the house to view it as soon as you possibly can. This may require some flexibility in your
schedule and that of your agent. But a
delay in seeing the home and making your offer can mean the difference between
an accepted offer and having a multiple offer situation in which you are
essentially bidding against other buyers for the home.
Finally, persevere. Keep at it.
Don’t get discouraged. Every
buyer who has beaten you to a house you wanted is someone who has been competing
against other buyers, just as you are.
But he or she kept at it until he or she got a home under contract at a
price that made sense. This real estate
market can be frustrating and discouraging to a buyer. But mortgage interest rates remain very low
and, in most cases, it can cost less to own a home than to rent one. Moreover, paying down a mortgage over time enables
the homeowner to build equity and wealth the renter obviously does not
build. Even in this tough market, the
reward is still there for those who do their research, prepare themselves, act
quickly and decisively and persevere.
For More information and to search the entire Charlotte area MLS database for homes, condos, townhouses, etc. FREE, go to www.EricDorerRealEstate.com
