Purchasing In Today’s Market
In Nashville’s dynamic market where inventory is low and demand is high, competitive situations arise often for buyers. Over the past several years, I would estimate more than half of our buyer’s purchases have been in multiple offer scenarios. The good news is we’ve won most all of them. Below, are four key elements that put buyers in a strong position to get their desired home.
Preparation: The first action for a buyer is to talk with a lender and get pre-approved. In a market such as ours, you want to look for an efficient lender that can close quickly as both of these put you in a position of strength as a buyer. If you are a cash buyer, you will want to make sure you have a proof of funds letter from your bank.
Timing: A buyer’s house of interest may come to them in many forms. It could be brought to their attention by a coming soon, through a home search notification or even a FSBO. As soon as a buyer knows they want to see the house, a scheduled viewing of the property should be scheduled promptly. The more time allowed for the agent and buyer to strategize, the better. If a buyer decides it is a property they want to make an offer on, often being the first offer can be an advantage.
The Best Offer: Once a buyer decides to write an offer, there are several decisions they will make in regards to the details of that offer. The major aspects of the contract that the agent and buyer will be discussing are price, closing details and inspection. Price is typically derived from a comparative market analysis, an agent’s expertise of the current home’s value and ultimately the buyer. When choosing a closing date, sellers often prefer a timely closing so this is taken into consideration. Lastly, an inspection period that is short is considered by most sellers to be favorable. Also, the buyer may want to look at purchasing the property AS IS. There are many variables and terms within an offer that can help a buyer rise to the top of a competitive or multiple offer scenario. Ultimately, when making an offer, one will want to ask “How do we standout as a buyer?“ and “How can we make this as smooth of a transaction as possible for the seller?”
Contract to Close: Once the property is under contract, the contract to close period begins. It is a detailed step-by-step process. The period includes earnest money delivery, consistent communication with lender, title company and listing agent regarding the contract. Inspection negotiations, appraisal and settlement statement details are also part of this process.
From first-time home owners to expanding families, when I’m representing my clients in these type of situations I’m intentional, focused and heart centered in helping them get their home. If you or anyone you know is venturing into Nashville’s competitive market, we would love to help!