This is my comment to another post wishing for a market crash. I wanted to share this for others that might be able to use this info to their advantage. Wishing you all the best of luck when purchasing your next home!
This would do more harm to the majority and allow more investors to just price you out of your market. There’s also plenty of people lined up in better positions than most to purchase a home. A market crash would mean banks also tighten lending and most likely will not lend to anyone without a high down payment or great credit. So no, a market crash will not help your situation.
However there are still ways for you to win in this market. You need a solid agent. Someone who knows the ins and outs of the contract. Stop wasting your time on part time or lazy agents who do not completely fill out the contract. A contract to purchase should have every one of the blanks filled in. Put your best foot forward on the offer.
Find an inspector to be available in the event of going under contract on a home. If I’m submitting an offer, I’m calling the inspectors I know to make sure they’re available in the next 3-5 days for a last minute inspection and I send those inspectors to my buyer. Letting the listing agent know you have an inspector lined up will allow you to shorten the option period and make you look like you’re ahead of the game.
Have your funds in order. That means be ready to deposit your option and earnest money the same day or next.
Offer to pay for the sellers title policy. This is often overlooked, but is typically $2-$3k. Less out of pocket expenses for the seller looks like you’re here to win their house.
Have your agent pull comps on the home and make sure you are offering in line with the market, or at least include a bank statement showing you have enough funds to cover a low appraisal. One of the biggest issues are people accepting the highest offer and then not closing because buyer doesn’t have the funds to cover a lower appraisal plus the amount over asking plus closing costs and down payment. Only offer within your means and again, have your agent pull comps on the property to make sure it’s even priced right.
A lot of sellers can be greedy and want to list at the top, even though their home is not worth it. This goes back to having your agent pull comps. You’ll see a home sit on the market longer for 3 reasons. Price, condition or location. Be smart and don’t panic buy.
Get a fantastic lender. I can’t stress this enough. There are lenders out there who are able to make your offer look nearly as good as cash. Ask your lender if you can start underwriting process so your contract can show your offer is not contingent upon lender approval. Ask for a shorter close date. Have your lender contact the listing agent to let them know you’re a qualified buyer and show they are available to answer any calls or questions. Drop your online lender and use a local lender. You’re just a number when going with Wells Fargo or rocket mortgage and it’s not often these will actually close on time. When reviewing contracts for my clients, we pay attention to the lender and if they do not answer or are hard to get in touch with, it makes it harder for the seller to accept.
Back to finding a solid agent – get represented. You’re not going to get 3% off asking just because you come in repping yourself. The seller has already put this amount in mind when they listed with a brokerage. Also, when I receive a contract from an unrepresented buyer, it usually needs a lot of work and is incorrectly filled out or incomplete. This sounds like a lawsuit waiting to happen. Use a professional, that’s what they are there for.
Last thing I can add to this is be patient. If your agent is pushing you to make a decision, take a step back. It’s one of the largest investments of your life. At that point, they might not have your best interest in mind and that’s not ok. Take your time and do research on what you want vs what you need. Consider the long term costs of purchasing a home and make sure you are in fact ready for home ownership.
Im happy to answer any real estate related questions. Feel free to PM. My goal is to educate and give buyers confidence and knowledge in buying a home. Of course everything is situational in real estate, and no two transactions are the same. I am a broker located in Houston TX.