Many have asked the question “How do I buy a house in this hot market that we are currently in?". During a sellers’ market inventory is low and demand is high. In order to be successful, a buyer must adapt a strategy to be able to compete with others currently in the market. By discussing this buying strategy with your trusted realtor, you will have a leg up ahead of your competition, which is other buyers.

In our current market we have arrived at homes that are scheduled to show and have found several Realtors and their buyers lined up waiting to see the home as well. A nice, well maintained and updated home that is priced well usually attracts multiple offers. Remember, If you love the home, you are probably not the only buyer that does. 

1.     First, Find a great Realtor. One that knows the market and has knowledge about the area you are interested in. Become their client and enter into a buyer representative agreement with them. The buyer representative agreement obligates the Realtor to be vigilant in representing the buyer. On the other hand, it obligates the buyer to use the Realtor if they buy, giving them comfort to commit the time to performing homes searches, showing, preparing contract forms and negotiating a successful offer. Here at the Freund Group we do not charge the buyer for this service, the seller pays for our service, and you are not obligated to buy a home. 

2.     Get your financing lined up. Be sure to talk to a respected local loan officer to find out how much you qualify for and if there is anything you should take care of with regards to your finances prior to being approved. When placing an offer, you will need a pre-approval from your lender so that all parties will take you serious. You can check out more about the pre-approval process on the last Freund Group Show.

3.     Decide where you can compromise. Finishing’s, wall color, and appliances can all be changed. It’s hard to change a floorplan and you are stuck with a location. Be sure to prioritize before you start your search. Know exactly what you are willing to compromise on and what you won’t budge on. If you pass up a home because you don’t like the flooring, by the time you go back it may already be sold.

4.     Get set up on a search. Unfortunately, many of the well know real estate websites where many buyers search contain inaccurate information, including properties that have already been sold or were never on the market to begin with. In fact we have seen cases of unsuspecting people being scammed out of money. The best, most accurate and most up to date information is on the Realtor’s Multiple Listing Service. This is the source for most of the information you will receive from the many online services. Have your Realtor set up a search for you. They can set it up directly on the MLS or, if they have the capability to send updates from the MLS feed on their website.

5.   Be prepared to act quickly. If you see a new listing that interests you, do your best to go see it as quickly as possible. You may find yourself in love with a home but if you hesitate you will miss out if another buyer comes along and acts quicker.

6.     Make a strong offer. Price is not always the only important factor but do not offer less than list price. In fact, you will likely need to offer more than the amount the seller is asking to be successful.         

7.     Put up a larger earnest money deposit.. It sends a signal to a seller that you are a strong buyer. Get an estimate from your lender of how much you are going to need at closing and out a large portion of that up as earnest money. You're going to get that back as a credit at closing.

8.     Keep the offer clean… Ask for the fewest seller concessions as possible. Seller contributions to buyer's closing costs, survey costs and home warranties come dollar for dollar off of the seller's bottom line, so it is the same as offering less price. Consider paying for these items yourself. 

9.     Offer to let the seller stay a few days after closing. This may be a benefit if the sellers have not moved yet and they are waiting to close on their new home until after they complete the sale of the home they are selling you. In many cases they will do the closings on the same day so they just need two or three days in order to get moved. We use a temporary lease for this that protects all parties.

10. Finally, Be resolute. Don’t get discouraged if you are not the winning offer on a  property. We have had buyers that made offers on several homes before they  were successful at having one signed by the seller.

Check out our the video below.

Be sure to like us on Facebook.

Click here for a Custom Search for Homes in Your Area

If you are thinking of buying or selling or if you are interested in more information on the Houston Area Real Estate market please contact us at 281-479-MOVE(6683) or clientcare@freundgroup.com.