In areas with limited inventory and many buyers, multiple offers are common. This is a fast and frenzied situation which can be exhausting for all parties. Some buyers who have been working the market with no success can easily get frustrated, tired, and no longer wanting to take part. This is due to the hurriedness of the market, the urgency to see new listings, possibly spending hundreds of dollars for pre-inspections, getting emotionally-committed to a home and making an offer only to find that they didn’t get it…again.
If you are a buyer and are either actively searching now or are a buyer who has stepped out of the market to regroup, I want to assure you there are opportunities, possibly with a slight change in strategy. If your goals are indeed to buy in the next few months to a year, now is still the best time to do so as rising prices and interest rates will erode your buying power the longer you wait.
So how do you battle buyer fatigue and adjust your home-buying strategy? Here are three great ways:
- Get competitive – Consider lowering your price point in order to increase your offer competitiveness. If you are currently searching for homes between $350,000-$400,000, consider searching for $300,000-$350,000 homes. This way, if you are competing, you can still offer an amount that you are comfortable with which can be high enough to get the sellers’ attention.
- Evaluate your offer –Maybe an adjustment in the amount of earnest money or down payment would be effective. Perhaps going back to your lender and making sure you have not just gotten pre-approved but have gone through the entire underwriting process will make you a stronger buyer. If you are working with me, let’s take a look at the last few offers you made with fresh eyes. I will offer you options which you can implement as you are comfortable. I will also let you know the pros and cons of each so you can have a full picture of what these options can mean for your bottom line.
- Look at homes that have been on the market for a while – Although what we are hearing from the media is that homes are flying off the market as soon as they come on, there is actually a large number of homes that have been on the market for weeks. Some sellers are pricing their homes aggressively – too aggressively – and when another home comes on the market that is a good substitution for the overpriced home, buyers are flocking to it, not the overpriced home. Therefore, the overpriced home sits on the market. The price may get reduced, but because it hasn’t sold, buyers assume something is wrong with it. Hint, hint – there may be nothing wrong with it besides it being priced too high at the outset.
When you are ready to get back in the market, let’s look at all the inventory – homes that are priced just above your preferred price range (as these sellers may be anxious to sell and be willing to negotiate) as well as homes that might need some cosmetic updates that have been languishing on the market. It is important to remember that in this market, a great deal doesn’t necessarily mean a low price – it may just mean you don’t have to compete.
In every market there are opportunities that come with strategy. If you are a tired buyer, this is a great time to regroup and take advantage of your opportunities. Let’s talk!