Listing the property below market value gets buyers’ attention, and the end result is that these properties often sell for thousands of dollars more than their list price, Scifo reports.
How should buyers approach the market in this environment? RE/MAX brokers offer the following suggestions:
Be Financially Prepared: Buyers should have their financing ready. If relying on a mortgage, buyers should have a current letter from their lender saying they are approved for a loan at least as large as needed to close the sale.
Whether making a small down payment, paying all cash or something in between, buyers should be prepared to demonstrate to the seller that those funds are on hand.
“Proof of funds is vital,” notes Scifo.
Move Quickly: If a property looks likely to attract multiple offers, buyers should realize that their first showing is likely to be the only one they get. In such circumstances, buyers should take their time, giving the home a careful inspection so they fully appreciate its strengths and weaknesses.
It’s also vital that buyers see the home as quickly as possible because in this market, the early bird definitely gets the worm, according to Stary.
“I want my clients to be the first ones in to see a new listing,” he explained. “If we can get into the home within a couple of hours, and it is something they really like, I want our offer submitted within 30 minutes. Then I will continue to follow up as quickly as possible. My objective is to get the seller negotiating and get the contract wrapped up before other offers come in.”
Determine the Market Value: Buyers must understand the value of the property based on the sale of comparable homes in the same area and then see if the asking price makes sense.