10 Home Buyer Tips in A Competitive Market

Because the housing market is extremely aggressive, I am taking time to prepare my clients in advance by sharing a few things to do and consider to move forward and be competitive when searching for their real estate investment. I hope these are helpful and will help you understand and prepare yourself for the process.

1. Work with your lender to get beyond pre-approved. Provide required documents early as this will help waive financing contingencies if necessary and expedite the settlement date.

2. When you find a property of interest, please make an appointment to see it right away. Don't wait until the weekend, if possible. Properties are moving quickly, and waiting can mean that you are crunched for time, or the property is no longer available.

3. Request a comparative market analysis (CMA) from your realtor to determine your offer price range. Please be sure to take this information very seriously. It shares recent sales in the last six months of similar properties within a designated radius. Your realtor will summarize the price range, and it is up to you to determine your offer price, however, always consider the range provided. (Note: in the current climate offers are escalating at the high end of the range and beyond)

4. Know in advance your maximum price and be prepared to think beyond that if you can and within your comfort zone. Currently, price escalations are averaging $40k-$60k above list price in some neighborhoods. Be prepared to consider a price escalation depending on demand. Also, consider looking at homes well below your maximum price to provide room for you to escalate if necessary.

5. Increase your downpayment if possible. Sellers are looking for stable financial portfolios. Higher down payments reflect a greater capacity to move forward with the transaction without financing approval challenges down the road.

6. Have excess cash on hand. Should the property not appraise at the sales price, be prepared to offer the difference and waive the appraisal contingency.

7. Complete your buyers' financial information sheet in advance. This sheet is available through your real estate agent and submitted with every offer. 

8. Be ready to block out time for showings, inspections, and completing your offer. Again the market is moving quickly. It is incredibly challenging to set appointments, so flexibility and availability are crucial.

9. Take time in advance to check out neighborhoods, look at property tours and photos online, and read the property description, including the square footage before requesting an appointment. Being sensitive to the fact that we are still in a pandemic, limiting the showings to only properties of significant interest safeguards you and all parties involved.

10. Don't get discouraged. The right house will be yours. Your realtor will work with you and your lender to find and extend offers until the right home is under contract. It may take some time, and you may not have your offer accepted on a few properties, but the important thing is not to lose sight of your ultimate goal; a brand new home!

Finally, I am available for showings. If you see anything that piques your interest, please let me know so that I can try to get your appointment on the calendar. If you are not a current client, let's set up a time for a buyer consultation to talk through your options!

Cheryl Shaw is a Top Metro DC Realtor licensed in DC, Maryland, and Virginia. She works with high-end professionals searching for their first home or future investment. Contact her at 202-823-9313 or ShawSellsDC@gmail.com. Visit her website at www.ShawSellsDC.com