With home loan interest rates reaching all-time record lows in 2020, we saw demand dramatically increase beyond expectations. As a result, the Fresno area became one of the hottest housing markets in the western US. Furthermore, with housing inventories at historic lows, we had the perfect recipe for a tidal wave of home buying competition. With this in mind, prospective home buyers had little time to consider their choices. Some even made offers that dramatically exceeded the asking price.
In fact, a recent survey showed that over 40% of all homebuyers who purchased a home between January and May of 2020 got involved in at least one or two bidding wars. Consequently, suburban area homes that have more square footage and outdoor space are now in demand. As buyer demand continues to increase, housing prices in the more affordable areas are moving higher as a result. With this increasing lack of inventory, prices and competition will keep growing for the next few years.
Modify Your Approach to Buy The House
Changing your approach could definitely give you an advantage. For example, offer slightly more than the asking price. This can help investors who are just trying to be profitable and not emotionally invested. Add an acceleration to your offer, this shows how high you are willing to go on your purchase price. Increase your earnest money deposit. This is a great way to show the sellers you are serious about purchasing their home, but does not effect your out of pocket cash at all.
Try tapping into the seller’s mindset. Don’t be afraid to knock on their door, but be respectful of their privacy when you do. Hiring the services of a reputable real estate agent or broker can be helpful. Ask the seller questions like:
- Are you hoping for a quick close?
- Do you need time to find another home?
- Why are you selling?
Increase Houseowner’s Interest
Remember, the more accommodating your actions are, the more the seller’s interest may increase. Be flexible where the closing date is concerned or only request that minimal repairs be done. Whatever it takes to keep the seller interested in you, DO IT! Most importantly, don’t let the home buying competition deter your home shopping drive. If you’ve been pre-approved for a mortgage loan and have the money for the down payment, you’ve navigated through the most difficult part of the process. But, if a longer search is required, don’t let your commitment waiver from your original plan.
Call Granite West Funding NOW!
For help with a home loan, call Granite West Funding at (559) 540-2275 today. Our business representatives would be glad to walk you through the mortgage or refinance process, as required. Call us today and let’s get started.