This spring many people are looking for more accommodating living spaces. But a common predicament many homebuyers have found themselves in is an extended search for the right home with many disappointments along the way.
“I’ve been searching for a new home for six months, and I just keep getting beat out by other offers,” is a statement Peck Barham and his team at Keller Williams Homewood have heard more than once from buyers seeking their help.
“It’s a super low inventory market right now,” Barham said. “It has been for years, and it’s just getting tighter.”
A lot of times potential buyers are competing against 10 other offers on homes that have just been listed.
Barham and his team help buyers beat those odds.
“The plan of attack for a situation like this is — No. 1 — to have the most up-to-date information,” he said. “Really you want to find these homes before they officially hit the market.”
When a buyer finds a home that suits their needs, Barham says that you don’t have the luxury of thinking about it for several days.
“You need to be ready to make a decision and for that you need to have a really firm idea of what you’re looking for in a house.”
Before the quarantine, the primary things to consider, according to Barham, were whether or not the kitchen was large enough or if there were enough bathrooms or closet space.
“Now the primary focus is flex-space,” he said. “I find myself talking to a lot of step-up buyers this year. More people realizing their home is no longer an adequate size, and the low interest rates make it attractive for people in this situation.
“Buyers should think about how many home offices they need,” he continued. “Do you need space for distance learning or a room for hobbies?”
Once you’ve nailed down exactly what it is you’re looking for, the next thing to focus on is making sure you can be as competitive as possible.
“In this competitive market, we are seeing prices rise. Offering more than asking price for a home is not always the best practice. Often the terms of the contract are as important as an aggressive offer. This includes flexibility in closing costs and reasonable contingencies. However, strong financing is paramount in any market,” he said.
Barham works together with his clients to find the right lender that will give them an edge over the competition. According to him, the things you should look for are speed, adequate communication and a willingness to help educate his clients.
If you’re planning to make a new home purchase this spring, there are three documents you should have on hand to provide to a lender.
To secure a great lender, you’ll need 60 days worth of bank statements with all pages included, a 30-day pay stub with year-to-date information and the previous two years’ tax returns.
Peck Barham is an expert at guiding clients through the real estate process in an extremely competitive market for the best price and terms in the least amount of time.
Give him a call or visit his website for more information about competing in today’s market.
