How to Have a Competitive Edge in a Hot Real Estate Market
I have out of town clients ask me how they can possibly compete when a new property hits the market. It’s really pretty simple. MOVE FAST! This doesn’t mean that you need to make a rash decision and have buyer’s remorse. It just means you have to know what you want and pull the trigger.
Here are some basics. You’ve been searching online for a great property. You basically know how many bedrooms and baths and your desired location. You’ve decided between a condo and a single family home. Those features are really important. So when your realtor sends you a property that meets those needs or has previewed a property before it even hits the market to give you a head start, JUMP on it. The rest of the questions can be answered during your due diligence time period. Don’t micro-analyze the details before you put the property under contract. If you take the time to analyze the HOA budget and meeting minutes before you write an offer, you will lose the property.
By no means am I suggesting that reviewing the HOA, CC&R’s and taxes are not important. You MUST read and review all of those documents. However, this very important information can be reviewed during your due diligence time period, where you will have 2-3 weeks to absorb the information, along with the inspections. If you don’t like what you find out, you can cancel the contract and get the earnest money back as long as you cancel before the due diligence deadline.
As I wrote about in last week’s blog, make sure you are pre-approved with a lender. This will also help to give you a competitive edge if get into a multiple offer situation. Paying cash? Great! Be prepared to get a Proof of Funds letter from your bank. It’s a quick and easy to do.
I’ve helped many clients snag a great property prior to it hitting the market or the first day on the market. But the Buyer must be prepared to make quick, informed decisions.