It is no secret that we are, and have been for quite some time, in what is considered to be a Seller’s Market. This isn’t just our typical Seller’s Market for Arizona; we are currently in a hard core Seller’s Market the likes of which we’ve never seen before. By now you’ve heard the woes of weary buyers who have been beaten out time and time again when making offers. If you haven’t experienced it yourself or know of someone who has, you’ve at minimum seen the stories splashed all over the headlines.
Each market comes with different tactics that will get your offer accepted. Many homes are getting offers well into the double digits, so your offer needs to stand out! Here are just 5 of my tactics to help you get under contract in this fast-paced market.
Get Pre-Approved
The days of just using a pre-qualification are over. Sellers want to know that you can actually close on the loan. They want to see that you’ve not only had your credit ran, but that you’ve also turned in your income/asset documents to the lender. The lender has reviewed your documents, and you truly are good to purchase the home. A similar offer with just a pre-qualification will lose to the offer with a pre-approval nearly 100% of the time. Don’t mess around; put in the effort and get the pre-approval.
Read more about the differences between a pre-qualification and pre-approval in my blog post here.
Wants vs Needs
Put together your absolute “must-have” items in a list and do not compromise on those items. You need to be realistic about these needs! For example, you may want a spare bedroom for the occasional out-of-town guest but is it really a necessity? You may want a pool, but you could put one in later on down the line. Be honest with yourself and create the list of must-haves and a secondary list of wants. Be ready to compromise on the wants.
Move Fast
In this market homes can go active in the morning and be under contract less than 24 hours later. That means you need to be prepared to jump the moment a home becomes available that meets your needs. While it may be inconvenient, you may need to go tour the home on your lunch break or right after your shift at work. If the home checks the boxes, make an offer right away. Chances are if you like it, so does someone else. If you wait even an extra day to think it over, you may lose your shot at putting an offer in.
It is helpful to make several decisions in advance, before you even start to make offers. Some items you can decide ahead of time may include:
- Earnest Money Amount
- Down Payment Percentage
- How long do you need for Close of Escrow
- Are you going to want a Home Warranty
- What title company do you want to use?
- What contingencies are you willing to give up or not give up?
Make a Strong Offer
This is not the market to mess around. Run your comps, know your maximum limit, and go for it. Some items to consider to make a stronger offer:
- No contingency to sell your current home
- If this is a necessity, let’s chat about options to get around it, such as our Sell & Stay or Become a Cash Buyer programs.
- Don’t ask for Seller Concessions
- This is not the market to ask the seller to pay for your closing costs
- Offer to pay any allowable HOA fees, such as transfer and capital improvement fees
- Be flexible on the close of escrow date and accommodate the seller’s requested date if at all possible
- Consider giving the Seller a post-possession
- Use the seller’s requested title company
- This is often an easy win for the seller
- Use an escalation clause in your offer
- Potentially waive the appraisal contingency or include an appraisal shortfall
- Make sure you truly understand what this means before agreeing to it
- You can read more about waiving the appraisal contingency in this blog post
- Use CASH whenever possible
- If you need a loan, let’s chat about our “Become a Cash Buyer” or “Home Trade-in” programs
Work with an Experienced Realtor
Yep, that’s me! In this market, you need an Experienced High Quality Agent who is on top of the current market trends. Someone who knows the nitty gritty details of the process and can truly take you from offer to contract to close. This is not the time to be utilizing a discount agent or your brother’s cousin’s old college roommate’s new girlfriend who just got licensed.
Contact me for even more tips on how to succeed in this crazy Seller’s Market.
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