Tips for Home Buyers to Win in this Seller's Market

Tips for Home Buyers to Win in this Seller's Market!

By Emilio DiSpirito - Top Rhode Island Realtor & Radio Show Host of The Round Table Real estate Simplified. www.MyDreamHomeNow.com

First off, it's important to know exactly what kind of housing market you are entering. We can't avoid the fact that supply and demand play a part in the cost of any product or service available to consumers, from gas prices to the cost of paper, products and services will always change.

We are in a historic sellers market right now, in Rhode Island and across the country. There are only approximately 30% of what we should have for homes on the market right now!! Let me rephrase that; We have about 2400 active homes available for buyers and normally we should have about 7500. Supply is very low. So how about demand? Demand is higher than ever. In 2016 the most homes ever sold on record in Rhode Island!! About 11,050 homes sold in RI last year alone!! That's about 40% more home sales than the bottom of the market!! What is causing the demand? Low interest rates, improved economy, government deregulation and easier stipulations on qualifying for funding.

It's not uncommon today to see homes sell within the first day or first couple of weeks on market when they are priced for the market. These homes many times have multiple bids on them from buyers with competitive offers! Home prices across the board are up around 7% over 2015 and we anticipate them to continue to climb in the Ocean State.

With all of that said, the best sellers market in history, near-all-time-low interest rates and more buyers fighting against you for homes than ever.. How do you find a home? How do you win as a buyer in this real estate market?! Here are some surefire tips from leading industry professionals:

• Have Realistic Expectations! By understanding the market and knowing the days of bidding low and expecting to haggle are in the past. The only time you have a shot at bidding low is when a home is overpriced and has been sitting on the market for over 90 days. 
• Access the Public Portal of MLS. You will need a Realtor for this. Basically consumer sites like Zillow and Trulia lag and can keep you in the dark sometimes days after a home actually hits the market. You see these sites feed off Realtor software and they do not update regularly. By the time something is listed and hits those sites, you may of already lost out. 
• Have your mortgage pre-approval or proof of funds in hand before you set foot into a property. Quick Video - 6 Reasons Why Buyers Must Be Pre Approved
• Consult with your Realtor for mortgage broker or bank recommendations. We can refer someone to you if you wish.
• Check out the power of Upfront Underwriting! This is the best way to compete against cash buyers!! 
• Have your agent find out exactly what sellers need!
• What "pains" can you take away from sellers? How fast or slow do they want to close? Do sellers have a place to go? 
• Placing a closing date that best fits sellers needs will give you an edge! 

• Understanding how to win bid wars!! 
• 100% necessary to have an experienced Realtor! There are roughly 183 steps in the process of buying a home, never-mind the fact that you need someone who has had success wining bid wars in the past like the best attorneys win the most impossible cases!
• Place odd pricing, $200,000 list - For example you can bid $201,753 when going against multiple buyers. There have been times where my buyers have won a home by $53. 
• Give competitive terms!! 
• Offer 5 business days for home inspections vs. 10 business days! 
• In RI, a buyer can walk away for any reason including cold feet within the first 10 business days!! Smart sellers know this and you can limit their exposure and make them feel warm and fuzzy by lowering their risk. 
• Waive the lead inspection if home does not have chipping paint or is newer than 1978. (Do this at your own risk. Here is a link for information on how lead paint is harmful and some precautions, etc. Please read and educate yourself before you make any decisions Click Here )
• Offer a faster Mortgage Approval Deadline! Depending on which bank, mortgage broker or program you are using, you may be able to do this! Speak with your mortgage professional and ask them what is the fastest they can get your loan approved!
• Know that you may be able to extend this later on if you absolutely must!! 
• Many Realtors put between 30 and 45 days here
• I've seen banks approved people in as little as 7 to 14 days!
• This leaves sellers feeling secure that you are a solid buyer when comparing your offer to others. 

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All information deemed reliable & not guaranteed. For assistance, please seek professional advice. Emilio DiSpirito is a licensed Rhode Island Realtor & can answer any questions or refer you to a local top producing agent in your area by clicking here.

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