These days it seems that it’s as hard to get an appointment for a showing as it is to get an offer accepted. We are still not able to hold open houses or broker’s opens in Los Angeles, and all showings must be by-appointment-only, no more than two buyers in the home at one time, and a Coronavirus disclosure must be signed by all parties prior to entry. Inventory and interest rates are still low, and buyer activity is high, making the home buying process a little trickier than usual. It’s not impossible though. Once your agent schedules your showing appointment, there are several ways to successfully compete in today’s seller’s market. Finances First! You need to act fast in this market, which means you can’t be held up waiting for mortgage approval. Talk to a lender, or your bank, before you even start your search, and get crystal clear on what monthly payment you can afford. Once you have your pre-approval letter, make a note of the expiration date. Most pre-approvals are valid for 90 days. If you’re coming up on that date, get a revised letter. Write It Down Make a list of what you want in a home. Start with your “must-haves”, and then move to your “nice-to-haves.” Spend some real time considering which of these items you’re willing to negotiate on. Additionally, think about how much money you’re willing to spend on any necessary fixes. If you’re open and financially willing to take on to a property that needs some updating, you may find the pool of available homes increases. Understanding this in advance will give you the opportunity to make decisions more quickly. Act Fast You need to be ready for action at all times. Not only should you get into see that house as soon as your agent suggests, don’t wait to submit your offer. Homes in this market are going into escrow in as little as one day. While you wait and contemplate, someone else may win out. Keep in mind that being ready does not mean jumping the gun. It is still critical to make wise and informed decisions. Don’t Over-Analyze the Purchase Price In this current market in Los Angeles, prices are high. While you may feel a house is overpriced, someone competing with you may not. Ask yourself: do you want the house? And is someone else willing to pay for it? If both of those answers are yes, you’ll need to tame your internal deal-hunting beast. Clients always ask me when the right time to buy is. I believe it is when you find the house you love, and when you can afford it. Anyone who has tried to time the market in the last few years is likely still on the sidelines, wishing they’d bought sooner. Rather than focus on the list price, or the price per square foot, focus on your monthly payment. Submit Your Best Offer Assume that the seller will be reviewing multiple offers. While we’re all naturally motivated to get a “deal,” offering lower than the listing price is not a winning strategy in a seller’s market. Your agent should communicate with the listing agent and find out how they are going to handle the counter offer process. Sometimes they’ll counter only the highest offers; sometimes they’ll counter everyone. Don’t automatically leave room to increase your offer because seller’s minds can change quickly. Price isn’t the only thing that matters. Shortened or even waived contingency timeframes make your offer more attractive. Sometimes offering the seller a free rent-back will make you stand out. A higher down payment or earnest money deposit may be what it takes for your offer to rise to the top of the stack. Remain Optimistic Buying a house is a lot like finding a mate! You often have to kiss a lot of frogs before you find your prince or princess, but the next opportunity is around the corner. You learn from every mistake and missed opportunity, and in the end, it usually works out for the best.
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