The most recent Beige Book, the Federal Reserve’s comprehensive look at current economic conditions in 12 U.S. districts, revealed positive economic activity in many Atlanta economic sectors including travel, tourism, commercial real estate, manufacturing – and residential real estate! Despite increased home sales and construction levels, low inventory is continuing to negatively affect the industry. To avoid aggressive, ugly bidding wars, hopeful buyers need to sharpen their competitive edge to be more appealing to sellers. Having a few charming and financial (while ethical) savvy tricks up your sleeve can help you land your dream home.
Cash is King
According to McClatchy data, paying in cash for home sales is more popular than ever. Prior to 2008, less than 10 percent of home sales were in cash. Today, it’s at 33 percent. Cash is an efficient route for sellers who don’t have to wait on a buyer to gather a down payment or gain mortgage approval. Sellers will pick the most hassle free option among fiercely competitive bidders. So if you have the means, consider offering cash.
If you don’t have the means or feel safe offering thousands of dollars in cash, gain pre-approval for a mortgage. By having a pre-approval letter, sellers and Realtors know that you’re serious, thus they are more assured they won’t be wasting their time on you, and should you accept the offer, there is a higher chance of successful closing on the home. To gain pre-approval, the buyer will need to provide financial information such as W2 statements, federal tax returns, bank statements and more. While a seemingly lengthy process, you’ll have to gather proof of all these documents to apply for a mortgage anyways.
Stay a Step Ahead
Just last month, Zillow announced Coming Soon – a sneak-peek feature that will allow hopeful homebuyers to preview homes that are not yet on the market, but are expected to be listed within a month. Buyers and Realtors that find a property they’re interested in on Coming Soon will be able to contact listing agents directly. The platform is designed to help buyers in areas of inventory crunch and sellers who are hoping to sell their home quickly.
“By offering a glimpse into a market’s future housing inventory, home shoppers can rest assured they have the broadest possible view of the local market to find the right home, and sellers can feel confident their home is being marketed as widely as possible,” said Jeremy Wacksman, vice president of marketing and product management at Zillow.
Appeal to Emotions
Using emotions as a viable mode of persuasion stems all the way back to Aristotle’s use of ethos in 350 B.C. A modern day model from Zillow recommends writing a personal, handwritten letter of emotional appeal to the homeowners of homes that you’re interested in. If there are multiple offers on a property it wouldn’t hurt to let the owner know why the home is so important to you, if it evokes memories from your childhood home or why the home is so perfect for your family.