Here are three ways buyers can succeed in an uncomfortable market.
Everyone is still figuring out 2022’s market, but there’s one thing we know for sure: If you’re looking to buy this year, it’s time to get uncomfortable. There are opportunities out there, but you have to work hard to get them. That’s why today I want to share three things you can do to get your offer accepted in 2022:
1. Get fully approved. I don’t mean getting pre-qualified or pre-approved. To succeed in this market, you have to get fully underwritten before you make offers. This process is very intensive. Your lender will look at your tax returns, pay stubs, and more. It’s a lot, but it’s a good way to increase your chances of winning a great home since you can get rid of your financing contingency.
2. Have cash ready to pay an appraisal gap. After working with tons of sellers since last summer, I know they are concerned about their homes meeting appraisal. If you’re paying cash, releasing the appraisal contingency is great, but what if your offer is financed? In this case, set some money aside to pay an appraisal gap. You can even put an appraisal gap clause in the contract to ease your seller’s mind.
3. Remove the inspection contingency. I know it sounds crazy, but hear me out: The strategy here is to only target properties that have their reports already on file. On top of this, get your contractor, agent, or any other expert to visit the home with you before the offer review date. Now you have an idea of the condition of the home before you make your offer, and you can safely remove your physical contingency.
There’s no way around it—buying in 2022 will be hard. However, if you work with a great agent and follow these tips, you can achieve your goals.
If you have any questions about today’s topic, please call or email me. I look forward to hearing from you!