For Buyers, in a Seller’s Market
Having been on both sides of the table in the last few months in the housing market in Nashville, I would like to share a few take-aways for Buyers.
For my Buyers who finance – don’t lose hope. Stay positive, stay aggressive, and stay vigilant. Now for a little tough love.
Adjust your expectations.
You have started a journey, and as that journey progresses, adjustments will need to be made. In the beginning, you met with a lender and figured out what your budget was going to be. Now interest rates are rising, and houses are selling for significantly over their asking price. Buyers are coming from out of state flush with cash due to the lower cost of living here compared to their prior state. Cash offers are incredibly difficult to complete against – but NOT impossible.
Why? Simply because there is so much less risk for the seller. Sometimes the only way to win is to take on more risk. It is scary. It can also be dangerous. Giving up certain rights to make your offer more attractive could end up costing you a lot more money. SO here is my advice:
Sit down with a Realtor and review a Contract. Do this BEFORE you look at any homes. Review every section of that contract and what it means – specifically, what the options are for YOU. Ask them what you can do to make your offer the most attractive. Ask them to explain WHY. Don’t know who to ask? CALL ME.
Adjust the price range of the homes you are searching and expand your area, so that if you find one at the top of that range, you can still submit a competitive offer over asking, if necessary, without putting yourself in a difficult financial position.
Do you have a wish list? Consider that list and consult a contractor. Maybe you have to take on a project or 2? Be sure to get a GOOD IDEA of what that might cost and factor that into your budget. If the location is perfect but it just doesn’t have an updated master bath? You can fix that! Look passed the curb appeal. Focus on things that CAN’T be changed. Paint colors, doorknobs, fixtures, landscaping? That can all be changed! Location, floor plan, structure? Not so easy to change. Prioritize.
Be Prepared! The “Picture Perfect” home is going to sell fast, and it is going to sell high. Yes, you could come across something perfect and it could all work out but prepare yourself and position yourself to be able to quickly provide your Highest and Best offer – INCLUDE your paperwork, provide your lender approval or proof of funds along with your offer. Don’t set yourself up for heartbreak when you could have done more. If you do offer your best and you don’t get that home, don’t despair! That simply means there is a better home out there for you. I would be honored to help you find it. Give me a call.
