So you want to buy a house, and you are frustrated by the lack of inventory . . .
It seems that every house you fall in love with sells to someone else who is willing to pay ridiculous prices, remove ALL contingencies (even Inspection and Appraisal) and pay CASH with no loan contingency.
After “losing” a half dozen great house, it’s easy to get depressed, frustrated, angry . . . homicidal.
Aw heck! Yesterday, I told a Listing agent that I was getting out my voodoo doll and HEXING that contract she just bound thereby cheating my Buyer from having THAT house.
It didn’t make a difference, BUT there’s a strategy I’ve been working on that DID work.
Quit bouncing from new listing to new listing . . . and making offers on one at a time . . . and while you’re enduring the several days of “Multiple offer Highest and Best scenarios” other houses are coming on the market that you are not seeing because you have tunnel vision on THAT house.
Stop being that ping pong ball and remember that FULL THROTTLE is the ONLY way you’re going to win this game.
You are no longer looking for one house – that specific house that is exactly what you and where you want it.
You are now looking for no fewer than 3 houses that are “Close enough” to what you want and where.
Know the difference between wants and needs and get real with these. Be willing to compromise your expectations.
Sacrifice that pool, so you can get in the right location. Add the pool later.
Accept potential for under-conditioned properties . . . You can renovate/expand the house later with a “Reno Loan” (I have some lenders that can do these all day long).
Bullet-proof your qualification by having your lender completely underwrite your financing so it’s unquestionable.
Get creative with terms (Cap Seller Inspection costs – Commit to higher LTV loans to free up capital to absorb appraisal shortfalls).
This is a full assault of the market.
Expand price range below and above previous, and go see ALL of them in a period of a day or 2.
Identify no fewer than 3 that are “close enough” to what and where you want.
Rank these 3 in order of preference and write 3 offers (one for each).
Submit the favorite offer with a short response deadline (24 hours) and present to the Seller’s agent making sure he/she is aware that, if this isn’t binding or very close to binding by that deadline, you’ll allow it to expire and will present #2 . . . and so on.
The first time I used this strategy was way back in the mid 1990s when we had lots of relocation people moving into Nashville, and the inventory was very tight. It’s a no frills approach that isn’t for everyone (not good for people who are hell bent on getting EXACTLY what they want and where).
It “works” amazingly well for home buyers who are serious about buying.
and it ain’t for the faint of heart.
but . . . It’s amazingly effective when done full throttle.
There IS hope for the home buyers in this market.