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Wednesday, October 5, 2022

Real Estate Logic – Competing in a seller’s market

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Interest rates are low; the demand is high; the inventory is low; it’s a SELLER’s market and the buyers are going BANANAS!!

BE PREPARED

Though I always recommend that buyers be prepared before going to market, it is more important now than ever to be pre-approved by your lender. It is not uncommon that you will find yourself competing for a home in a seller’s market and it is not always the highest bid that wins. For me, with the listing agent, it’s the whole package which includes a candidate who is rock solid financially. Of course, cash will always be King and we are seeing buyer’s digging into the savings to seal the deal, applying for financing after the deal closes. If you need the proceeds from your home to purchase, make sure that your lender has approved you for interim financing until you have the proceeds from the sale.

KEEP YOUR COOL

You will need to keep cool and collective and not let the heat of the battle burn you emotionally. It will not be uncommon in a seller’s market to get your heart set on a home only to have the seller choose another buyer making this home the forbidden fruit and everything else you see may fail in comparison. Keep your emotions in check and…

GO FOR IT!

You are now prepared. You have your emotions under control. Now let’s make it happen. With likely competition ahead and your Realtor being told to have you come in with your “highest and best” offer, I have typically found that it is the “best” not “highest” which will win the prize when the listing agent is a seasoned pro. To be the best, be flexible in your closing, consider purchasing with an “as is” clause knowing that you will be protected by a home inspection and last, but not least, be prepared to pay top dollar knowing that with today’s low interest rates, your long time exposure will be minimal.

ADVISE: Discuss your options with your Realtor and let them guide you through the battle. Though it may be a challenge in this crazy market, you will do just fine and you will enjoy your new home for years to come!

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Gary Leavenworth
Gary Leavenworthhttp://www.garyleavenworth.com/
Gary Leavenworth is a broker at Coldwell Banker in Naperville specializing in residential real estate. Contact him at gary@garyleavenworth.com.

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