Finding the right home to buy in the Boston suburbs can be stressful in today’s “seller’s market”. In many areas of the Boston suburbs, buyers barely have time to decide on a home before there’s a frenzy of other offers to compete against. The inventory of homes for sale is still remarkable low, and with buyers itching to settle on a home before interest rates creep higher, it’s a tough time to be a home buyer. But not to fear! Here are seven ways you can get the home you want, even in a competitive market.
1. Don’t rely on third-party real estate sites. Most of today’s popular real estate sites experience some lag time in receiving updates of new home listings from the Boston Multiple Listing Service (MLS). Avoid the delay by having your realtor set you up to receive auto text or email updates of new homes that meet your search criteria the moment they hit the Boston MLS.
2. Have an agent do the legwork. Your realtor shouldn’t just be waiting for homes to hit the market. Ideally, your realtor (otherwise known as your buyer’s agent) should seek out homes that are a great fit for you that may not be publicly available yet. Doing this legwork will take extra time but it may give you an opportunity to tour homes and consider your offer carefully, without feeling under such a huge time pressure as you’ll have with homes that are already available for sale to the general public.
3. Look beneath your price range. Often when people can’t find a home in their price range they start pushing the envelope on what they can afford. Instead, try searching just below your price range. If you do find a home that works, you’ll be better positioned to take steps to make your offer stronger if you’re in a multiple bid situation.
4. Consider all the offer terms. When facing a bidding war, the price is important but don’t forget the other terms. If all else is equal in the offer, you can take steps, such as making a large down payment, to make your offer more attractive.
5. Play nice. In many negotiations, it pays to hold your emotions “close to the vest” yet in a bidding war, it’s often better to show the love. Case in point: A client of ours was reviewing multiple offers on their home. The first buyer had little to say during the open house, and they presented their offer with no commentary. The second buyer submitted their offer, along with an email explaining that they would have bid higher if the kitchen wasn’t so dated looking. The third buyers lived nearby, and submitted their offer along with a glowing letter talking about how they had long admired the homeowner’s gardens.
This small gesture on the part of buyer #3 won over my client. It wasn’t just emotions though. They wanted to work with someone who truly loved their home and would see the transaction through. I am happy to report that the sale proceeded smoothly and both buyers and sellers were happy.
6. Pay attention to deadlines. In multiple bid situations, you have very little time to make a decision. Respecting the seller’s timeline for presenting offers is important. These small details will give the seller a hint at what you’ll be like to work with throughout the process. Even small details like submitting an offer late or without the complete information can make a bad first impression.
Avoid these challenges by having your preapproval letter and checkbook in hand before you go out house hunting. Also, be sure to work with a realtor who is extremely responsive. It’s important to have someone on your side who’ll provide you with the data and insights you’ll need to make the best decision swiftly.
7. Put your best foot forward. In a multiple bid situation, you don’t always have an opportunity for a second chance. Homeowners are not required to go back around to all bidders and ask them to submit their “best and final” offers. It’s best to make your first offer your best offer.
[photo courtesy of N. Rocha]
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