The Hard Truth for Buyers
With a highly competitive seller's market, the Fitzpatrick Team wants to set clear expectations of today's market for our buyers. This might not be easy to swallow, especially for First Time Homebuyers, but the Fitzpatrick Team is dedicated to speaking truthfully about the reality of purchasing a home!
Here are our Hard Truths for Buyers:
If you require financing to purchase your home, speak to your lender about getting a fully underwritten approval. Your chances of getting your offer accepted will improve if the seller knows you are qualified and fully approved by the bank with no possibility of problems.
Stack Your Cash
Having cash funds prior to purchasing a home will give you more buying power in a few different ways. First, offering a larger down payment allows a stronger position. Second, having cash on hand for appraisal gap coverage will provide the seller peace of mind.
Don't Shop The Top
Once you define your budget with your lender, plan on shopping $50-$70k below your budget. Why? Because in today’s competitive market, offers are being accepted far above list price. Having the extra funding will allow you to aggressively submit offers like a boss.
Availability & Priority
Don’t even think about entering the real estate market if you are unavailable for showings. Be prepared to be available as soon as a new listing you like becomes available. Have a flexible schedule. In some circumstances, offers are even being submitted sight unseen. Also, most properties only need one open house to procure dozens of buyers, so it’s in your best interest to keep your weekends clear and your phone by your hip.
No Second Showings
This sounds ridiculous right? Well, it’s the reality of our market. When you get the opportunity to view a property, bring all necessary parties. Take photos. Be present, because this is most likely your one and only time to see the house before you submit an offer. In multiple offer settings be prepared to get your strongest offer in before the deadline.
Limit Your Contingencies
Be calculated about asking for any inspection requests. Make your offer “As Is” or limit the number of repairs the seller will have to make. You can still have the right to inspect the property and terminate if necessary.
You Will Lose 5 Offers, Before You Win 1
And we are being generous. The biggest piece of advice amongst all of this information is, STAY POSITIVE. There is a strong possibility that you won’t win your first, second or third offer. You need to be able to bounce back with the same determination and motivation when you started.
Trust The Bidding War Strategy
Trust your agent's strategy. If you have different opinions, we strongly advise leaning in the direction of your agent’s strategy. They have experience in this market. If you want to learn more, you can read Winning Strategies for Multiple Offer Scenarios provided by the Fitzpatrick Team.
Use An Experienced Real Estate Team
The Fitzpatrick Team closed out 2020 with 151 transactions totaling $63 million in sales, which placed us #1 Real Estate Team on Aquidneck Island and the #2 RE/MAX Team in Rhode Island. Collectively, our team has over 50 years of real estate knowledge combined, that will get you to the closing table fast.