10 tips to make your property stand out | lifestyle
The hot real estate market in Northern Utah continues. With inventories reduced by two thirds compared to the previous year, buyers are facing tough competition.
In Weber County, for example, only 298 homes were listed at the end of January. That is 64% less than in the previous year. Davis and Morgan counties have reduced inventory levels by 65% and 81%, respectively.
The competition was toughest in Box Elder County, where the number of homes for sale fell by 76%. This equates to less than half a month in delivery and means Box Elder has the strongest seller market in the state.
For buyers who are frustrated with the situation, there are a few things you can do to increase the likelihood that the seller will choose your listing. Below are 10 top strategies successful buyers are using today to increase their chances of getting a home:
1. Send a pre-approval letter: If you are serious about buying a home in this market, you should speak to your lender and get pre-approved for a loan before looking for a home. Submit your pre-approval letter with your offer to show that the more likely you will complete your loan quickly.
2. Submit your offer quickly: In some cases houses are not signed until hours after the house is sold. Work with your broker to receive notifications when new offers come on the market. Then be ready to visit right away and get a quote as soon as possible. Work with your agent to determine if the seller has set a deadline for receiving offers.
3. Increase your money: Show the seller that you are serious about buying the property by submitting a large amount of money. Talk to your broker about what is common in your market and what amount would attract attention.
4. Make your money non-refundable: Your offer becomes even clearer when you pay a deposit that you won’t get back if you cancel for any reason. Typically, buyers get their money back if they cancel in certain situations. With non-refundable money, you will lose the money if you withdraw for any reason, even if you can’t find something on inspection or can’t get funding. It’s a great way to get the seller’s attention, but there is a risk.
5. Agree to pay above the estimated value: In a rapidly rising market, not all homes evaluate what the buyer has offered to pay for. Make your offer stronger by letting the seller know how much you are willing to pay over the estimated value. This often involves more money to make up for the amount the lender won’t borrow. Make sure you work with your broker to clearly state what you are willing to pay.
6. Pay cash if possible: Sellers like cash because the buyer can buy the home quickly. Having the option to pay without funding is a great way to bolster an offer.
7. Keep the deadlines as short as possible: Your offer will be more tempting if you have a quick inspection deadline, funding deadline, and deadline. Make sure you work with your lender to see how quickly you can realistically complete your loan.
8. Limit contingent liabilities: While this can be risky, some buyers are willing to forego the safeguards that allow contract termination based on inspections, valuations, and financing.
9.Tell the seller how much you love the home: If you really love the sellers home, let them know. Use a letter as an opportunity to let sellers know that you are serious about purchasing this particular property.
10. Use an escalation clause: You can use an escalation clause to let the seller know how much you are willing to pay over what another buyer is offering. Be careful with the strategy and make sure you clearly state the limit of your willingness to pay.
Contact a local agent to learn more about navigating the housing market in your area. A directory of Northern Wasatch Realtors can be found at NWAOR.com.
Shauna Ray is the President of the Northern Wasatch Association of Realtors.