So, why not just wait for a price correction? Well not everyone has that option, and it isn’t so clear as to when a correction will be taking place, especially in an area with high population growth that is as insulated as ours.
Many individuals and families are moving to the area as their employer’s have begun transitioning their headquarters to Texas and the industrial sector is booming in Dallas-Fort Worth. Others have simply noticed the lower cost of living and strong economy when compared to other states and are willing to pay competitive prices if it means they can live in the area.
In fact, our bustling economy and job market are responsible for much of the uncertainty around a price correction. There are too many opportunities and successful individuals in the area that continue to drive a more competitive and highly priced housing market. In short, too many people are still willing and able to buy at these record high prices so that keeps the market much the same.
So how do you compete with these consumers? Start with a focus on avoiding buyer fatigue. Buyer fatigue is the feeling of frustration experienced by buyers after viewing and making offers on dozens of properties only to be met with rejection. Searching for a home can be an exhausting experience, especially in times like these. However, this does not mean all hope for your Texas dream home is lost. Here are a few strategies we recommend to avoid developing your own case of buyer’s fatigue.
Work with a Trusted Real Estate Agent to Set Realistic Expectations
In this highly competitive market, it’s important to work with an experienced real estate agent to meet your real estate needs. Work with a real estate agent whom you trust to have your best interests at heart. A good real estate agent will advise and negotiate on your behalf, while helping you to set realistic expectations. Make sure to choose a real estate agent who will be completely transparent with you rather than one who will tell you what you’d like to hear. This way you will feel adequately prepared and informed throughout the entire process.
Get Pre-Approved for a Mortgage
With inventory being so low, it’s important to make sure all your finances are set before you begin viewing properties. Clarify with your lender that you’d like a fully underwritten pre-approval. This is the most all-inclusive and detailed mortgage pre-approval available. Having a fully underwritten pre-approval letter will help you to appear better qualified than competing buyers. This way you won’t miss out on any good opportunities within your budget. Make sure all your paperwork is in order so that you have everything ready to go when you find your dream property.
Prepare to Offer Above List Price
One of the leading causes of buyer fatigue is indecision. A lot of buyers will find a home they are interested in, yet they still hold some reservations when it comes to making a lucrative offer. In a seller’s market, it’s important to take immediate action so as not to get caught in a loop of repeated rejection. Be prepared to make an offer above list price once you find a property that meets your desires. Experts recommend offering 1% to 3% above the listing price on competitive properties. Work with your real estate agent and lender to decide on a strategic offer.
Time the Market
New listings typically go onto the market on Thursday or Friday and don’t stay for long. Don’t wait until the following week to start considering a home as they likely already have offers by that time. Keep an eye on new listings coming onto the market today to increase your chances of placing a competitive offer and winning the home. You can do this by having your real estate agent set up a search for you so that you are immediately notified when new listings hit the market. Need an agent? Click here.
If you are looking for the right real estate agent to guide you through this sometimes difficult process of finding a home in this type of crazy market, give us a call. M&D Real estate agents are experts in the area, at winning bidding wars and will make sure you get in to the home of your dreams in no time at all.