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How to Stay Competitive in this Market

Apr 14

These are some basic tips to help buyers remain at the top of their game in today's marketplace.

 

Buyers looking to buy homes may experience this type of market exhausting. Waiting to win a bidding war on a home takes patience. I've owned and operated a real estate brokerage located in O'Fallon IL for many years. I've heard many stories from agents regarding the impact of the market on their clients. I've read hundreds of sales contracts and have a good grasp of Realtors the most popular strategies in order to have their offers accepted.

 

Today, I'll provide a few easy suggestions to aid buyers compete in the current market

 

1. Find out if you are pre-approved. In the current market there is no time to search for the house that you've always wanted, only to go to the bank. In order to prove that you're serious about buying the home you'll need to be pre-approved. Speak to your local lender and figure out what monthly payments you're at ease with.

 

Agents for listing receive requests from buyers and confirm the lender's name and pre-approval letter. If the agent who is listing is a top producer, they will know many of the local lenders. Some lenders have bad reputations for being averse to deals. If you're working with one of these lenders The agent listing the property will likely share this information with their sellers.

 

If you're working with an experienced real estate agent, you can ask for their recommendations on the most suitable lenders to make your offer accepted. In smaller towns, this information is essential when making an offer. Real estate professionals are more likely to observe each other more frequently in smaller towns. Your Realtor and mortgage broker's knowledge and experience can have an enormous impact on your contract's effectiveness.

 

2. Prepare yourself. Your Realtor will collect your earnest payment and give proof that you've remitted it so the seller knows that you're on top. Find out the best closing date of the seller and other factors that could make the sale more appealing.

 

Every seller has different circumstances that drive sellers to market their property. One example is that a seller might be selling their primary residence through a relocation firm, and another might be selling an investment property. Each seller will present terms that appeal to them.

When buying a home in an extremely competitive market for sellers, it's advisable to have your Realtor contact the listing agent prior to submitting an offer. The agent could ask the agent for the seller to clarify what their client is looking for in a contract. If you can find the details, you can modify your offer to meet the most appealing terms for the seller. This approach will put your offer at the top of the list every time.

 

 

3. Find a trustworthy realtor. I make sure that clients are as prepared as they can when we meet. In addition to looking through on the internet, we look at off-market properties to show our customers. This provides buyers with an advantage.

 

4. Make sure you have an Escalation Clause. Escalation clauses, which is a clause that a buyer adds to a contract, states that they will raise their offer over the lowest cost of sale. The contract price for the buyer is automatically raised without the need to resubmit a new contract or amend an existing contract. The clause usually has the ability to escalate up to a certain amount. This tactic is used to ensure your offer is high in the bidding war.

 

Here's an example.

  • Homebuyer A has offered $500,000 on a home valued at $490,000, with an escalation clause to increase the amount by $3,000 higher than the highest offered.

  • The house is offered 30 offer contracts. The highest bid of Buyer B is $550,000.

  • In the end, the price for contract sales by buyer A is automatically raised to $553,000.

This is among the most well-known ways to outbid your competition in highly competitive markets.

Escalation clauses is only used when you can increase your bid significantly over the list price. The pros of an escalation clause are they immediately put your bid at the top of the list. They are often used by the agent listing your bid to force you to pay more than the contract price.

An escalation clause enables the seller's agent to solicit buyers to request that they sign an agreement to escalate. After they've reached the maximum price, you'll have to pay a set dollar amount.

In 2018, escalation clauses were popularized and have become an increasingly common element in real estate markets. However, they could be a legal nightmare to navigate if they are not appropriately designed. Before you employ this method, make sure that your Realtor is knowledgeable about the concept.

 

Things to be Keeping in Mind

 

It is important to be flexible to satisfy any seller's unique requirements as a buyer in a highly competitive market. Every seller is different and has unique requirements. You'll be able to beat your competition in the event that you are able to react quickly and respond to the needs of your customers.

If you own a property to sell to buy another property, you may need to think outside the box. Sellers with multiple offers for their home won't sign contracts that depend on the sale of a second house. Sellers are looking for the lowest number of delays and contingencies as is possible. We can help you swiftly locate buyers in this highly competitive market.

 

To make yourself more flexible to make your life more flexible, you might consider the possibility of selling your home and renting an AirBnB (or temporary rental) to let the property. Even though this can be risky as there's not a lot of supply, it may give you the edge that you need to persuade that the seller to sign your contract. There may be more money that can be used to push sales to move more quickly.

 

Some companies will buy your house after you find another , however it typically comes with a cost. Since the demand for homes is increasing each year, lending institutions and realtors are becoming more innovative. Take some time to research companies in your area that offer services to buy another property prior to selling your property.  You can check out one of our Broker's Websites at Dream Homes With Jake to see a list of houses available on the MLS.  You can also check out community information on our website at:  https://www.ellerbrake.com/community/houses-for-sale-in-shiloh-il/

 

If you're considering buying or selling Don't be afraid to reach out to me by email or phone. I'm looking forward hearing from you.

Ellerbrake Group powered by KW Pinnacle
Phone:  (618) 632-0001
Address:  1003 E Wesley Dr # C, O'Fallon, IL 62269
https://www.facebook.com/EllerbrakeGroup

Dream Homes With Jake

Address:  1003 East Wesley Drive Suite C, O'Fallon, IL 62269

Phone:  844-913-2857

https://www.facebook.com/DreamHomeswithJake