As it stands right now, the real estate market here in the Twin Cities (and the nation as a whole) is very strong. I talk to mortgage and title companies that have their hands in the transactions, and we are all seeing the same things. The sales of existing homes is the highest its been in 10 years.
With the increase in number of buyers, that demand is driving up prices. Many homeowners are back to their 2006 peak values, and in some instances they’ve even surpassed them.
The lower the price range, the more the competition. Not only is there a number of first time home buyers emerging, but investors are busy gobbling up the lower end of the inventory. This can be problematic for buyers / investors and the agents that are representing them. A lot of homes are going to a multiple offer situation and often being sold over asking price.
What does that mean to you if you find yourself competing over an increasingly small supply ? Well, simply put it means that you need to have the strongest possible offer, and be the first to make an offer.
Don’t just get a pre-approval – work with a lender that can do the underwriting on you first so that the process to close is only 2-3 weeks. Putting a quick close on your offer could make it more attractive.
Eliminate all the contingencies – Does your offer require that you sell your house, get an inspection, get financing and an appraisal that all meet your specifications? This leaves you a lot of outs and is good for you, but may not be what the seller has in mind.
Don’t lowball – If you want the house, you are probably not the only one. If it goes to a multiple offer situation, they are going to ask you for your highest and best offer. To me, this isn’t the time to try and “win” the deal. Rather make a good offer first and get the dialogue with the seller to yourself.
Off Market / Prelisting Opportunities – Some agents are going to have access to deals that are not on the MLS. This means you are not competing with the public at large. You have the ear of the seller directly.
***VSM specializes in off market deals. Our property owners often let us know when they are considering selling. We bring them an offer at the price that they need, and they agree to sell. We are happy to see if we have something for you.
Act Quickly – Do not wait to see 4-5 more houses if you found the one that you love. Write an offer on it right away. That way you can potentially control the deal before there are other offers.