Strategies for Success in a Sizzling Real Estate Market

As we edge closer to the heart of the spring market and the summer season that follows, will the real estate market continue to sizzle? According to a recent Commerce Department report, the answer is yes. The housing market recovery remains on track. Sales in the Northeast last month were up 20.6% and continued to boost the economy; however, limited inventory thwarted sales and is looking to drive up prices. The real estate market will continue to be hot – so how can buyers master the market without getting burned?

With real estate listings being snatched up instantly, buyers in the Boston area may find themselves in unsuccessful bidding wars that can be discouraging and time-consuming. Like most worthwhile efforts in life, buying or selling a home requires a well-thought-out plan, good resources and responsiveness. 

Prior to searching for homes, earnest buyers should determine what they are willing to pay and at what point they will walk away.  Knowing this threshold and the value of their targeted home will prevent buyers from getting carried away if a bidding war ensues.  Save time and frustration, particularly in a competitive low inventory climate, by offering the best offer upfront.  Make the offer count, right out of the gate, since it will may be the only chance you will get  in today’s tight market. 

Strengthen buying appeal by getting  pre-approved for a mortgage, and attaching the key financing documents to the offer.  Further enhance viability by making a down payment of 10% or more and showing proof of funds.  Sharing details on mortgage approval and the availability of funds shows commitment to the sale – and that will bode well for buyers in a competitive landscape. 

Whenever possible, avoid adding contingencies to an offer.  A contingency-free offer is always more appealing to a seller since it prevents the homeowners from having to arrange and pay for repairs. 

Responsiveness and flexibility is also important in a strong market. Make sure your broker is checking market inventory daily, and plan to look at target properties the minute they go on the market.  Be proactive about the inspection process. Line up an inspector and appraiser ahead of time to be ready to hit the ground running.  If the seller asks for flexibility that strays from the perfect buying scenario, strongly consider adjusting timing and homeownership goals so that your buying stock rises in the seller’s eyes.

Finally, if a property is simply a must-have home, consider writing a personal note that tugs on the homeowner’s heartstrings. A home is a reflection of its owners. When a prospective buyer shares their love affair with a house via a timely, handwritten note to the owners - it may very well be the deciding factor in a competitive market.

Debi Benoit, principal of Benoit Mizner Simon & Co., has been Wellesley’s #1 real estate agent since 2006.  The Wall Street Journal twice ranked her among the top 100 real estate professionals in the country.  With offices in Wellesley and Weston, Benoit Mizner Simon & Co provides buyers and sellers in both markets with in-depth knowledge and experience combined with unparalleled client service.

With offices in Wellesley and Weston, Debi can be reached at 617-962-9292 or debi@benoitmiznersimon.com.