If you’re thinking of buying a home, you already know that the housing market is still crazy . . . and still has historically low inventory. That isn’t going to change anytime soon (honestly, maybe not even in the next three to five years. WHOA).
So, if you want to buy a home in the next few years, what are you to do? Let’s talk about some possible buyer tactics for this housing market. These are tactics that I’ve had good success with personally, and it’s so rewarding to find creative solutions to get buyers into homes!
Rent-Back Agreements
Buyers know more than anyone else that if a seller sells a home with nowhere to go, they could literally be homeless. So, what can smart buyers do? Why not offer to let the seller rent their house back from you for a certain period of time while they look for a home?
This saves them the hassle of two moves and possibly two mortgages and will probably make you one of their favorite people. It also allows you to make a little money back.
Inspection Contingency Options
If you’re nervous about buying a home without an inspection, I really can’t blame you. I wouldn’t want to do it, either. Most of the time, even the sellers are surprised about what the inspectors find. (The percentage of homeowners who have their homes inspected just to know what’s going on is really, really low.)
Rather than risking buying a home without an inspection contingency, smart buyers are putting a repair MINIMUM on their inspection request. For instance, if the repair total is less than $1500 or $2000, the buyer will not ask for those repairs to be made. The seller is safe from being asked to fix little annoyances like loose doorknobs and knicks in the wall, and the buyer is still protected from actual major defects in the home that pop up.
Be sure your agent shows you the definition of a major defect in your purchase agreement and that you’re all on the same page before submitting an offer.
Submit a Backup Offer
Making an offer on a home and hearing that it wasn’t accepted can be frustrating and disheartening, especially if you’ve been searching for a home for a while. But smart buyers should strongly consider submitting their offer with a backup offer addendum. This allows them to be in second place, ready to roll, if the first offer falls apart (and sadly, that does happen). With a backup offer, you immediately negotiate all the terms and conditions upfront. That way, if the primary offer falls through, everybody already knows what the terms of that backup offer are.
No Love Letters Unless They Go from Client to Client
Fair housing laws are clear when it comes to what Realtors can and can’t do to promote their clients’ offers. It’s important for agents to avoid discrimination. Sadly, this means that “love letters,” the ones with the cute photos and gushing comments, are a big no-no according to the law.
Depending on the information the buyer shares, the letter might allow the seller to discriminate against the buyer. If you truly believe your language arts skills are going to win over the seller, you can always personally deliver a love letter to the seller. Just don’t ask your agent to do it, as it can quickly lead to a fair housing violation. Smart buyers show their level of interest in a property by writing an awesome offer through their agent.
Choose a Local Lender
It can be tempting to go with the lowest-rate lender on the internet. But in this market, a local lender is really important. Local lenders have some skin in the game—they might be neighbors or have kids who play with your kids at school. They also often have relationships with local Realtors, which gives the listing agents a confidence boost that the loan will actually go through. Lenders advocate for their buyers just like a buyer’s agent does.
Good lenders are often found through your Realtor. You need a lender who is an excellent communicator and can help you get to the closing table without losing your mind. If you ever need a recommendation for a great lender, I have a few who can help, so don’t hesitate to reach out.
As you might have guessed by now, the definition of success in the 2021 housing market is creativity. Be a smart buyer, listen to your real estate agent, and get creative.
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