In recent years, Millenials have made up the largest part of the home buying market. Many are first-time homebuyers and therefore do not carry with them the contingency of needing to sell a home. However, in a housing market with limited entry-level homes and an increase of cash buyers, young homebuyers may come away feeling discouraged as they begin the homebuying process.
Nonetheless, there are preventative steps buyers can take to give themselves a competitive edge.
Get Started and Meet with a Realtor
Step number one is to GET STARTED. Before you start to look at homes, meet with a trusted realtor, so you understand what the home buying process looks like. If you establish a client relationship with a realtor beforehand, you will be able to move that much quicker when your dream house pops up on your screen. Start looking at homes now, before the busy and more competitive spring and summer months hit. The more properties you see, the more you will understand what it is you really want in a home.
Get Pre-approved
Make sure you meet with a lender, have your proof of funds, and are pre-approved for a home loan. Not only do these preparations allow you to move quickly in this competitive market, but it also shows you what you can realistically and comfortably afford.
Also, consider taking a loan that will appeal to the seller. Cash and Conventional loans are always more attractive than FHA, USDA, and VA loans, which carry more stipulations.
Make a Strong Offer
Begin with a strong sale price. In a competitive market, your offer should be close to, if not higher than the original sale price. Offering anything less in a competitive market with only result in frustration for all parties involved.
Keep Your Offer Simple
Keep your offer simple. Sellers are drawn to clean offers that do not have a lot of contingencies or stipulations. To make an offer with fewer contingencies, consider bringing with you a friend who is a contractor or home inspector. The contractor/inspector will be able to highlight possible pitfalls and give insight to what may need to be done to the home. This information may reduce or help you forgo certain inspections, which is more appealing to the seller.
Adjust Your Wishlist
Do not be too picky. Adjust your wishlist and your must-haves if possible. Consider adding or making updates later and re-evaluate what you can live with now.
Write a Letter
Finally, consider writing an offer letter to the seller. A letter that communicates the connection you feel with the seller’s home can appeal to the seller’s emotions and may make the difference if the seller has to choose between competing offers.
These ideas may not seem like rocket science, but they can make a world of difference when you are competing with multiple offers on a home or with those who have more to offer than you do. When it comes down to it, remember that the quicker, easier, and stronger your offer is, the better the chances are of securing your dream home.
The Michael Stoltzfus Group is located in Lancaster, PA and serves the Lancaster County and Central Pennsylvania area. We work diligently to help home buyers and sellers like yourself achieve their home goals. With extensive experience and knowledge of the area, the real estate team at the Michael Stoltzfus Group will provide friendly and professional support for your entire real estate transaction.
Contact us online where one of our professional team members will respond via email or call us today at 717-380-3367.