Make the Best Offer on a Hot Property

Yes, even in a buyer’s market, a buyer is not in total control of the outcome of an offer to purchase. There are many situations in which properties are hot, and they will have several offers from buyers.

Situations in which you, as a buyer, may not be holding all the cards include buying properties in the communities where prices have remained stable and the market hasn’t tanked. In my area, Greater Boston, there are many such communities and my properties’ values have held up pretty well. The rest of the country has other such areas; this is due to both their economic condition and the availability of housing.

Another situation in which a buyer has to be competitive is in properties that have been priced really well. I am not talking about a listing agent telling you that a property is “priced to sell,” I’m talking about your buyer agent telling you, “We gotta go see it TODAY!” Some sellers are not in the mood to sit on the market and would take the price they believe they’ll get rather than hope for something else. Some sellers just need to move quickly or get rid of the property for all sorts of reasons. The seller’s life is of no concern to they buyer, just focus on whether you like the house and if the price is right.

For a great source of hot properties, look at the price reductions in your market and reconsider visiting those homes that have had the price adjusted. A house that has sat on the market for weeks suddenly become attractive when the sellers finally lower the price. Sellers either get sick of sitting on market or they found their new home, and they are ready to move. Many overlook this source of great property deals.

Here are a few tips that will help you be a competitive buyer and secure a hot property, once you’ve found it:

First, know what you want ahead of time. You may not have the luxury of thinking about it for more than a few hours once you find a hot property. Don’t mole it over endlessly, because you will have to either put in an offer or let it go. Once a well-priced properties come on market, you need to make a quick decision and be happy with it. If you are uncomfortable with that, either you are not ready yet or it is the wrong property. Remember, just because the price is great, doesn’t mean it is the right property for you.

Second, get your pre-approval ready well ahead of time. A strong buyer has his or her finances in order and a proof of his or her ability to secure a mortgage. The seller’s agent may ask to see it – and I have mixed feelings about sharing pre-approval letters – but whether or not you show your pre-approval, you must have it ready. In a multiple offer situation, it may help you secure a property and prove you are a good bet for the seller.

Third, make a good offer. If you are not a seasoned real estate investor, don’t try to play around too much. You should buy a property for market price, and if you are very lucky, maybe a bit under. But, don’t make a low-ball offer on a hot property; you’ll be wasting everyone’s time and you risk losing out to a better buyer.

All this being said, it is imperative you know what a HOT property is. Just remember that not everything that glitters is gold, and it is up to you to identify if something is hot. If it is, prepare to make it your own.

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