In the Raleigh/Durham area we are in a severe seller’s market. This was caused and is sustained by very low inventory (available homes on the market). There are certain things potential buyers need to know about how to operate in this market.
In this fast-moving market most sellers will not even contemplate accepting a “contingent” offer. By contingent I mean that the offer is contingent on the selling of another property before the buyers can close on this property. Sellers that have an existing house and it has to sell prior to buying the next one need to go ahead and wrap their heads around the fact that it will almost be impossible to time it out where they only have to move once. In order to attempt to make that timing issue work out, the best thing to do is list and get the existing house under contract. While that house is listed be looking and have a couple properties in mind that you want to go for. When negotiating an offer try to get the closing date to be around 60 days out. As soon as the existing house goes under contract, submit an offer on the one you want if it is still available. Since it take about 45 days for a loan to close, you have about 2 weeks to find and get an offer submitted and accepted on the next house and still be able to close both properties on or around the same day.
They have to be pre-approved for a mortgage before starting to search for the right house. Pre-qualifying is not sufficient in this market. If they get into a multi-offer situation the sellers will take the offer that is pre-approved over one that is just pre-qualified.
They need to be aware of new properties as they hit the market and if they look good on paper, they need to get out to see the house in person the same day it hits the market. Houses in this area usually sell the first day and with multiple offers. Buyers can not afford to wait until the weekend to go see a hot property. It will most likely be gone by then.
In this current market haggling on price is not recommended and may cause the sellers to take another offer. Buyers need to make their offers as “clean” as possible. By clean I mean don’t ask for a lot of trivial things that may cause the seller to accept a “cleaner” offer (like home warranties, high amounts of closing costs paid by seller on behalf of buyer, etc.) A clean offer is “here’s what I will pay, I don’t need any concessions and I am pre-approved for a loan”. Those types of offers will get accepted almost every time.
Potential buyers don’t know these things and it is up to the buyer’s agent to guide and coach them through this “low-inventory” buying process.
For more information please contact me at 919-889-1766 or at Kevin@KevinBurrusHomes.com