One thing you’ll notice when you go look at a house that’s just come on the market, there may be a lot of other people looking at the home. That’s a sure sign that it’s going to be competitive.
If a Columbus home is in the Under $300k price range, is priced at or below market value, and is move-in ready (fresh paint, new flooring, etc.), there’s going to be a lot of competition right now. There’s simply too much demand and not enough supply.
Buyers need to keep in mind that price is not the only consideration for the seller. If you want to make an offer on a home with high demand and WIN, you need to be strategic.
Be Ready To Move Fast
Before you even start looking at homes for sale, you need to connect with a lender to get pre-approved. This will not only help you know upfront how much you can afford and save you time, it will also help you to be ready when the right home hits the market. A strong offer needs to include the fact that you are pre-approved.
The home seller is going to be more likely to choose a safer offer, one from a buyer who is serious about buying and has the financial ability to buy. Being a pre-approved buyer shows the seller that there is a higher probability that you will follow through, because you’re serious and not just kicking tires. Pre-approval also makes it less likely that your financing will fall through and kill the deal.
Find Out What’s Important To The Seller
Hopefully, you are house hunting with the help of an experienced local real estate agent. Such an agent will first contact the home seller’s agent (or the seller if they are selling themselves) to find out what is important to them besides price.
Maybe the seller is relocating and needs to move quickly. Perhaps they need to close soon but will require a rent-back agreement because they will be closing on their new home later. Maybe they don’t want to deal with any repairs.
If you can make an offer that gives the seller something else that is important to them besides just price, you increase the likelihood that they will choose your offer even if it isn’t the highest.
Include An Escalation Clause
You’re probably asking, “What is an Escalation Clause?” It’s a real estate contract that gives the buyer the ability to raise their price if the seller receives a higher offer.
With an Escalation Clause, your offer goes up in increments. You put a cap on it, of course, but this may keep you from getting beat out by an offer that’s not much higher than yours. It stinks to lose out on a home over a thousand dollar difference.
An Escalation Clause isn’t right for every buyer in every situation, so your agent must have an in-depth working knowledge of when and how to utilize it.
Many Columbus buyers, especially first-time buyers, tend to underestimate how competitive the market here truly is for the best homes.
Be patient. Understand that sometimes you’re not going to win. Unfortunately, you may have to learn a couple of times the hard way.
Keep in mind that your dream home may come back on the market. Maybe the seller did choose the highest price over all else, but the buyer didn’t have financing in order, and the deal fell apart. Perhaps the buyer got cold feet and backed out; this certainly can happen with first-time buyers. The reason may have nothing whatsoever to do with the home itself.
Additionally, it can work out even if you don’t win what seems like the perfect home. It can be a blessing in disguise because the next house you see could be even better. And, you’ll be more prepared, having been through the process of making an offer on a home.
It is possible to win your dream home, even in this highly competitive seller’s market. We have had many people successfully buy, even in multiple offer situations.
Ready To WIN Your Dream Home?
There are many strategies that can help you WIN your dream home, even in a competitive Seller’s Market. Our guide, “15 Ways To WIN Your Dream Home” lays out 15 strategies to help you win in a bidding war, or get a better price even if yours is the only offer. This guide digs deep into tactics, plus gives you the real pros and cons of some popular ideas.
Don’t underestimate the competition on the best homes for sale in Columbus, Ohio. Prepare yourself to WIN!