Check out this guest blog from the Nevada Housing Division on improving your homebuying power!
Nevada has certainly earned its place in housing headlines over the years. We’ve come full circle from being the fastest-growing state for more than a decade (and therefore an in-demand real estate market), to being a top-ranking state on just about every foreclosure list in the mid 2000s, and back to being among the most competitive real estate markets in 2017 for both the north and the south.
So what does a “hot real estate market” mean to you, the homebuyer? You have to be more strategic. A lot more.
It’s A Seller’s Market Alright
A seller’s market means there’s a low inventory of homes on the market accompanied by a high number of buyers in the marketplace. It’s your classic supply-and-demand scenario. In order to stay competitive in this environment, there are some strategies that industry experts recommend in order to stand out in the crowd and get that house you have your eye on. The way we see it, somebody’s got to get the house. It might as well be you.
Get your financial ducks in a row.
To be taken seriously as a homebuyer in a seller’s market, you have to, have to, have to be pre-approved for a mortgage before you ever utter the word, “offer.” In a multiple offers situation, which is likely in this market, a seller will choose yours if they’re more confident your financing will come through, and they have no idea about John Smith, who hasn’t yet been pre-approved.
Naturally, we recommend that you work with a Home Is Possible-qualified lender for two reasons: they can help you with the pre-approval process, and they can help you secure down payment assistance if you qualify. Getting thousands in bonus money can help you make your absolute best offer. (That’s good, because in a seller’s market, real estate agents typically recommend leading with your strongest offer.)
Make a squeaky clean offer.
It stands to reason that a seller will accept the best possible offer. What you may not know is that money isn’t the only thing that makes an offer attractive. The fewer contingencies—like selling your home first, or making the offer contingent upon the outcome of a home inspection—the better. Granted, contingencies are designed to help protect you, the buyer, but in a seller’s market, they’re more of a luxury than standard operating procedure.
For example, if you’re buying a 50-year-old house, an inspection is more important than if you have your sights set on a one-year-old home. In a buyer’s market, buyers can ask the sellers to make needed repairs, but in a seller’s market, minor repairs will most likely fall on the buyer’s plate in order for the offer to remain competitive. The fine folks at Green Lockett Realty will know your market and the property best, and will be able to provide guidance on which contingencies you can include or should omit.
OK, so your finances are squared away. Your offer is free from contingencies (or close to it). How else can you stand out in a sea of buyers? Many experts recommend writing a heartfelt letter to accompany the offer.
Some sellers won’t read the letter, or care, but many will. Put yourself in their shoes: Wouldn’t you like the idea of your home going to a nice family who appreciates the intricate tile work you lovingly installed and has a dog that will fit perfectly through the custom dog door you built (or whatever your personal story is)? Of course you would. Again, be sure to get input from Green Lockett Realty on this strategy.
Ready To Start Shining?
Be the rock star we know you can be. Let Nevada Housing Division and Green Lockett Realty help you shine in your homebuying quest. You got this!