Real estate markets are unpredictable; they change from season to season and sometimes even overnight. The ongoing pandemic has also affected the overall real estate market by large.
As per the observation made by the top realtors in San Antonio the demand for houses is quite high as compared to the supply. The listed houses for sale in San Antonio, Tx are marked as sold within a short span, making it a hot seller’s market. This in turn makes buying or investing in real estate a stressful affair for the buyers.
Read here to know more about the mistake to avoid homebuyers in hot markets.
So are you someone looking to invest in real estate in this hot market? If yes do not worry, San Antonio realtors have listed down a few effective strategies that can help you to win the bidding war.
Be clear about your need and wants:
In a hot market, you need to act fast. Before plunging into the competitive real estate market, be clear about your needs and wants. Although you cannot compromise on your needs, you can set aside some of your wants, if you find a house catering to all your needs at a desirable price. So do proper research of the locality and the type of house you wish to buy. If you’re interested in buying San Antonio condos for sale get pre-hand information about the property reports, disclosures, and offer due dates.
Get ready with pre-approved finance:
In a hot market, you might get only a day or two to submit your offer after viewing the house. So before you start your house hunting journey get your finance arranged.
- Be ready with a sizeable chunk of cash on hand for making the down payment
- Improve your credit score.
- Get a pre-approval letter from the lender.
- Choose a local lender having a good relationship with your real estate agent. This will enable quick closing of the offer
- Have all your paperwork and documents ready for finance.
- If a family member is gifting money for a home, keep your gift letter handy.
In a hot market where a property has several offers, a pre-approval letter makes your position strong to win the bid. A pre-approval letter gives security to the seller that you can afford the house you are looking for. An offer without a pre-approval letter is immediately knocked out.
Hire a realtor:
Having a good realtor is a huge advantage in a competitive market. Talk to the recent clients of the realtor to find out if he will suit your needs. Top realtors in San Antonio have immediate information about new listings and can also arrange a virtual or digital house tour for the buyers. Thus if the house meets your needs the experienced San Antonio realtor can guide you in making your offer stand out and win the deal.
Make your offer attractive:
In a hot and competitive market, you may likely end up in a bidding war. Make your position strong by making a strong offer.
- Offer a competitive earnest money deposit.
- Offer more than the asking price. (This will help to win even against a cash buyer)
- Make a large down payment.
- Accommodate seller’s timeline. Find out whether the seller is in a hurry to move out or he wants to stay for a few months before closing. Thus construct your offer accordingly.
- Get pre-approved finance.
- Negotiate to pay the seller’s closing fees (except the real estate agents commission)
- Complete your offer by attaching all relevant documents. Incomplete offers are often rejected.
- Offer to rent back the house once you own it.
The above points will help you to win the bidding war.
Have fewer or no contingencies:
In a hot market removing or reducing contingencies can make your offer more competitive. A contingency clause states that certain conditions have to be met before finalizing the sale. Take expert advice from your lawyer or real estate agent before waiving off contingencies. In absence of contingencies, you will lose the earnest deposit amount if the sale does not work out. Waiving off inspection contingency assumes that you buy the house in its existing condition. The seller is not responsible for fixing any repairs. Or you can include an inspection cap where the seller needs to pay a minimum of 500$ to 5000$ for all repairs.
A clean offer sails successfully in a competitive market. But remember it is risky and the decision should be taken only under the professional guidance of a San Antonio real estate agent.
Write a letter to the seller:
I think everyone will agree when I say that we are all emotionally attached to the house we live in. So, write a letter to the seller explaining that you would take utmost care of the house. Write something about yourself so the seller knows who is getting their house. Also, stress the point that you are the perfect buyer and you have fallen in love with the house at the first sight.
Although not all sellers are influenced by the letter, still there is a 10% chance for your offer to win the bid.
Conclusion:
It is quite overwhelming to buy a house amidst a fierce market. But, don’t get discouraged if you lose on an offer. Follow the advice of a San Antonio real estate agent and write an offer that is good, fast, and clean. This will increase your chance of acceptance while buying or investing in real estate and will earn you a good deal even in the seller’s market.
