10 Crucial Tips For Buying A Home In Today’s Crazy Market
Everyday Homebuyers ask me about the current
state of the housing market. They ask:
How low is the current inventory of homes
for sale? Are we in a housing
bubble with prices ready to drop? If you’re trying to buy
a home in this super-hot sellers’ market (or know someone who is), here are 10
ways to increase the chances you’ll win your perfect home:
1. Don’t only get a standard
“pre-qualification” letter from your lender. In
addition, have your lender write a personal letter on your behalf touting you
as an extra special “solid gold, highly qualified” buyer – one that any seller
would be fortunate to have.
your lender to call the listing agent before you submit your offer. Your
lender should “sell you” to this agent, reinforcing what they said in the
3. Ask the listing agent what terms other than
price would make your offer perfect for the sellers. What
closing date do they prefer? Would they like to have a few days (or weeks)
possession after closing? Shorter contingency periods?
4. Put up a large, impressive earnest money
deposit. Earnest money is typically refundable if you
don’t approve the home during inspection or run into an unexpected glitch
obtaining a loan. Big deposits (even though they are refundable) impress
5. Consider making an “as is” offer, saying
you won’t ask for repairs as a result of the home inspection. You
should still retain your right to do an inspection (have it conducted by an
expert) and cancel if you’re not satisfied. While I hate to say it (because we
primarily represent sellers), “as is” doesn’t prohibit you from asking for
repairs if you find something unexpected.
6. Make sure your agent is extra nice to the
listing agent. Don’t underestimate the inclination of a
listing agent to recommend a buyer to their seller because they feel a
connection with the buyer’s agent. People naturally want to do business with
people they like.
7. Don’t presume you are overpaying if you
have to pay above appraisal. Remember,
appraisals are based on past sales. With homes currently appreciating 1%+ a
month, the home you buy is probably worth more than an appraisal based on past
data. Also, because you typically wait 30-45 days between when you buy and
close, your new home will likely go up 1%+ in value before you own it.
8. Write a personal letter humanizing yourself
and your family to the seller (delivered
with your offer). Talk about how much it would mean for your family to be the
new residents of the home. Include photos if you have kids, grandkids, or pets.
Sellers often have strong emotions connected to their home. They are
more inclined to sell to people they believe will appreciate and enjoy it. If
you lost out on previous homes or have faced other challenges, you might evoke
sympathy by mentioning that too.
9. Sign up at www.GetPaidHalf.com (we
own this particular site) where you learn about newly listed homes and get a
Home-Buyer Commission Refund. We refund our buyer 50% of the commission paid by
the Sellers. The refund can be used to pay for closing costs or you can
get a check at the close of escrow. Buyers who use this website have a huge advantage.
10. Don’t feel defeated if your offers on the
first, second, or even third home are not accepted. New
homes come on the market every day. You may lose one you love, only to find
another one that you love more. It happens all the time. I know it’s hard, but
try to temper your emotions until you finally do buy a home… then celebrate
In summary: “Buying
a home in this market is like juggling cats while walking blindfolded on a high
wire over a shark infested moat after drinking three martinis.”
If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information you seek through an alternate communication method. Canyon is an Equal Opportunity Employer and supports the Fair Housing Act.