LIME REALTY GROUP works with all kinds of buyers. Sometimes we have buyers who are investing in properties they want to fix up and resell, sometimes we have buyers who are looking for properties they can rent. Most of our buyer clients are people looking for properties they can buy for themselves. That home they want to live in and put down some roots.
For these people, it can be hard to find a good deal. Competition for a good value property can be as hazardous as swimming in a tank full of sharks. A lot of investment buyers have cash on hand and can make a sale happen much more quickly than a home buyer looking for a personal property. Really good deals seem to get snapped up overnight. Although we appreciate and love all of our clients, we have some tips for those of you who are looking for yourselves and don’t have the luxury of dropping down the full price in cash. Hopefully, these bits of advice will help you gain an edge when you’re shopping in the shark tank market.
First and foremost, BE READY. We’ve discussed this before in this blog and we’ve heard it said by our agents countless times. But here’s another reason to get pre-approved and have your finances in order. One of the reasons cash buyers have a stronger position is their ability to make a sale happen quickly. When you’ve taken care of your finances and you’ve already been pre-approved, you strengthen your position because you can close quickly. Not as quickly as a cash deal, but fast enough that a seller will more willing to wait a couple extra days. It’s essential to have that pre-approval and get a rate locked in. Once all of this is in place, the time between an accepted offer and closing shrinks considerably.
Second, OFFER ABOVE ASKING. Now this may seem like the exact opposite of what any buyer might want to do. But let’s be honest, if there’s more than one offer on the table, the seller might be willing to wait a little longer for a buyer to get their finances together and their loan in order if they can make a little more. Especially when combined with a pre-approval, this step could make the difference between you walking away with the home of your dreams and you walking away with nothing.
Third, MAKE A CONNECTION. If at all possible, make a personal connection to the seller. Ask to meet them. Take an interest in them. People form emotional attachments to their homes. It’s not uncommon for a seller to choose a riskier less profitable offer because they don’t want to see their home become a rental property. If it’s not possible to meet the seller, write them a personal letter complimenting them on the property and explaining why you want to buy it and live there. A personal connection goes a long way to making your position strong.
Fourth, BE POLITE. This goes hand in hand with the previous suggestion. In a market where money can flow quickly and deals can happen very impersonally, many investors and cash buyers are quick to point out any shortcomings a property has that could strengthen their position. But this tactic can backfire. A seller is more likely to want to work with someone who shows respect, appreciation and good manners. Offer compliments where you are able and be on your best behavior. Presenting a well mannered polite offer will go a long way to helping you stand out above the crowd.
Finally, BE FLEXIBLE. Sometimes being flexible with your terms can make all the difference. We recently had a sale where the sellers needed time to get their affairs in order and finalize a sale of their own. The buyers were willing to let them stay in the home rent free until they could finalize their next home and move out. Because of the buyer’s willingness to meet these terms, the seller chose them over some offers that were financially much more lucrative. Being flexible and willing to work with a seller can be a huge bonus for a buyer.
There are lots of other tips and tricks to shopping for a home and we’re going to cover many of them in this blog. Hopefully, these suggestions we’ve given you today will help you compete in a market where there is high demand for quality properties at reasonable prices. Just like Southern Utah!!!!!!
As usual, Lime is here and ready to help all of our clients and we’re always ready to offer strategy and help you make the best deal possible in every transaction. Choose Lime to get what you want out of real estate in Southern Utah today.