In Layman's Terms
In Layman's Terms
Navigating the current real estate market is undoubtedly a challenge for everyone - especially buyers. The National Association of Home Builders reported that 45% of long-time home searchers have yet to buy a home because they continue to lose the bidding war against other hopeful buyers. This results from the high demand for housing, low inventory, low-interest rates, and an influx of people moving at historic rates. If you are one of the many hopeful buyers looking for a home in 2022, there are some things you can do to make your offer stand out in the sea of competition.
When it comes down to selecting an offer, sellers want to feel comfortable accepting it, knowing that you, as the buyer, are indeed qualified to purchase their home. Many sellers won't even consider an offer that doesn't come along with a pre-approval letter from a reputable lender or bank. One of the best things you can do for your home search is to call a lender before you even tour a home. Your lender will get you pre-qualified for a home, provide you with a budget, and a letter saying you are indeed qualified for purchase.
Increasing the amount of your down payment or earnest deposit you provide shows the seller that you are financially stable, serious and that buying their home is truly what you want. If you're in a situation to do so, offering 100% cash will greatly increase your chances of beating out the competition.
The decision of whether or not to waive your inspection period or other contingencies is a calculated risk - and isn't for everyone. This decision should be made on a property-by-property basis with heavy consultation from your realtor. Speak with your agent to discuss the pros and cons of waiving this period in your offer and if it is right for this home. Make sure you consider the age of the home, the location, the overall appearance, and other factors that might contribute to the integrity of the foundation, walls, or roof.
An example homebuyer letter to seller | Image Credit: Finn Team
Something that buyers have started doing in recent years is including a letter to the seller with their home offer. These letters are customized by property and highlight why you love this specific home, how you see yourself in it, and a little bit about yourself. Something else we suggest adding to these letters if you're comfortable is a photo of you or your family, including your pets - this helps the seller connect with you and your words even further.