You can do your part to beat out other buyers.
- Although housing inventory is picking up, there still aren’t enough homes to fully meet buyer demand.
- There are steps you can take to give yourself the upper hand when you’re up against multiple buyers.
- Mortgage pre-approval, paying cash if possible, and being flexible are all ways to stand out from the pack.
There was a point not so long ago when buyers were so desperate to purchase homes they would make offers without actually seeing those properties in person. The good news is those days may finally be coming to an end. Housing inventory has been picking up steadily over the past number of months, and between that and rising mortgage rates, the once-red hot housing market is finally starting to cool off a bit.
Still, the real estate market continues to lack inventory in a notable way. And that means buyer demand is still strong, and is likely to stay that way for the remainder of the year.
In fact, financial expert Dave Ramsey thinks there’s a good chance homes will continue getting scooped up quickly during the second half of 2022. And that means you might face your share of competition as a buyer. But worry not — there are steps you can take to give yourself an edge if you end up landing in a bidding war.
1. Get pre-approved for a mortgage
A mortgage pre-approval letter won’t guarantee you a home loan. But what it will do is make it clear to a seller that you’re a serious buyer who’s financially capable of purchasing a home. If you’re up against buyers who don’t come in with mortgage pre-approval, you could wind up with a definite advantage.
2. Pay cash if that’s easy for you to do
Let’s be clear — most people cannot afford to plunk down several hundred thousand dollars on a home in one fell swoop. And even if you can afford to, there are risks involved — namely, tying up so much cash in an asset that may not be so easy to sell should your circumstances change and a need for money arise.
But maybe you recently received a $300,000 inheritance from a loved one who passed away, and it’s money you totally weren’t expecting. That could make paying cash for a home more feasible. …….