As the weather heats up, so does the real estate market, and there are some tips buyers can follow to beep up a bid and beat out the competition. NY1's Real Estate reporter Jill Urban filed the following report.
With inventory so low, it is a tough time to be a buyer. Open houses have long lines and most offers are often beat out by higher bids that are usually all-cash.
"In a market as competitive as this, we are seeing people needing to come in at all-cash in order to get deals done, and unfortunately there are a lot of people who just don’t have that as an option," says Doug Perlson, the CEO of RealDirect.
Buyers who can't offer all cash still have a few ways to beef of their bids. Perlson says waiving a mortgage contingency can be risky, so instead he suggests offering appraisal protection.
"With appraisal protection, you are letting the seller know that should an appraisal come in a little bit lower which sometimes happens when a market is going crazy, that you'd be able to come up with a little and not have the deal fall apart because of a low appraisal," Perlson says.
Another tip is if the seller is downsizing or moving far away, Perlson says it could help to offer to buy some of the seller's furniture. Moving it or getting rid of it could be difficult and expensive, so it might make a buyer's offer more attractive.
Also, think outside the box during a search. Shop for square footage and not room count, because sometimes looking for less could turn up more.
"If you are currently looking, try looking at a place that has one less bedroom, for example a one-bedroom if you want a two-bedroom," says Perlson. "You might be able to find the square footage you need with a simple reconfiguration to get you what you want."
When it come time to make an offer, Perlson says buyers should not use round numbers because they are likely to have the same bid as other buyers. Coming up just a few thousand dollars could translate to a little more each month on the mortgage, but also tip the balance in a buyer's favor.
Lastly, he suggests to be aggressive by reaching out to potential sellers.
"If you know the line, if you know the building, be aggressive. Send out a mailing, see what comes back," Perlson says. "We recently did that on behalf of a client. About 100 letters were sent, there were two responses and one actually got a deal."
Those are just a few ideas on what can be done to get the deal done.