3 VIP Tips for Home Buyers in Today’s Market

If someone says that current Housing market is Buyer’s market, tell them it is old story. Now it’s Sellers market in many states and metros especially in Houston. With shrinking inventories and more competition, buyers are finding they have less negotiating power in today’s market. CNNMoney recently highlighted some of the following tips to help home buyers be more successful in their purchases this spring:

1. Lowball offers are a waste of time: “The days when you could scoop up a house for 20 percent less than the list price are long gone,” the article notes. Homes are selling much closer to their asking price nowadays, surveys show. Michael Murphree, a real estate professional in Birmingham, Ala., says he advises his clients that if homes are selling below the list price in an area but are still being sold in less than two months to make an offer that is no more than 2 to 3 percent below the asking price. If homes are selling above the listing price, Murphree advises clients to make their first offer at the full asking price.

2. How to win a bidding war: To do that, agents say come with a higher price and fewer contingencies, and be flexible with when you can move in. In some transactions, the sellers could be left trying to find new housing for themselves, so some real estate professionals suggest leaving the closing date blank on the contract and allow the seller to fill it in, or be willing to negotiate a leaseback if the seller needs more time to vacate.

3. Shop around for financing: Credit unions and small banks tend to offer the lowest rates and may even be less strict about their underwriting, Guy Cecala, publisher of Inside Mortgage Finance, told CNNMoney. Cecala recommends getting a good-faith estimate from one lender and then showing it to other lenders to see if they can beat it.

Read full article at money.cnn.com

As I been updating you all for months about Houston market, it is truly a bidding war in many areas. Sellers are willing to wait longer if they are not getting the price they wanted. Buyers don’t want to go up as they think sellers will come down but it’s not happening in many cases like past. Buyers have to come to the reality and make up their mind whether getting a deal is priority compared to getting a good house everything they are looking. I know it’s tough to realize market is in a different state compared to last year and Buyer need to make a decision according to their needs.

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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