Despite recent signs of a softening, the sellers’ market continues to continue. Regardless of price point it’s still quite a challenge to actually win a deal on a house. So, it pays to put your best foot forward as you navigate the path.
Actually, it has always paid to put one’s best foot forward – in real estate as in the rest of life – but how we define the term is – as all things are – evolving and many-sided.
“Best foot forward” in real estate starts with mindset and moves toward strategy and tactics. So, let’s start with mindset.
Optimistic
Understand that the process may be long and discouraging. Sometimes things happen quickly, sometimes not. It may one offer, it may take five, it may take ten. Stay positive. Don’t give up. It will happen.
Realistic
You will not find a perfect house. No one ever does. Look for a house with zero issues, and you’ll still be looking five years from now. This has always been true, but in this market, even more so. These days, “perfect” will involve some compromises.
Emotion-free
The house-buying process always involves emotions. How could it not? It’s where you are going to make your home. But these days, it pays to remember that this is, first and foremost, a business deal. Getting your feelings hurt if you don’t get the deal, or if the sellers won’t offer any concessions is understandable, but not helpful. Take your feelings out of the picture and look at the business angle with a cold, clear eye.
As for strategy and tactics …
Full Underwriting
When competing with a bunch of other buyers, proving your credit-worthiness is critical. A pre-approval letter doesn’t carry a great deal of weight these days. It’s best to go in with your lender’s underwriters’ full approval, so the only major hurdle is the appraisal. Sellers are looking for this these days.
Shop Below the Limit
To get a deal, you’ll likely need to go over the asking price, and/or be able to prove you have cash on hand to cover an appraisal gap. Don’t torture yourself looking at houses at your price limit. You probably won’t be able to get one.
Highest and Best - Always
Unless the house has been on the market for a month or more, it makes absolutely no sense to go in with an offer that isn’t your highest and best. With multiple offers, sellers sometimes call for highest and best – sometimes, but not always. Why wait for them to ask? Decide how badly you want the house and go in loaded for bear.