In the real estate market, you are not only competing against other homebuyers, you are also trying to score a deal against real estate investors. Here are some ways in which you can win against investors when purchasing your dream home.
Real estate is slowly becoming the perfect choice of investment for those who are looking to diversify their portfolio and secure their retirement.
Get Rich Slowly reported that figures prove that housing can be one of the best investments one can make, as house value appreciates over time. According to the outlet, "median home values nearly quadrupled" from 1940 to the present times.
While most people thought that it can be pretty easy to score your dream home in the market, it can be difficult to do so when you're competing with a real estate investor.
According to Trulia, competing against a real estate investor can sometimes be challenging because the latter often has all-cash proposals, which can ultimately lead to a deal with the seller. However, the outlet noted that there are certain ways in which you can win your dream house even though you have an investor to compete with.
The publication advised that if the property that you are eyeing on is something that you see yourself living in for a couple of years, or even your entire lifetime, then it may be wise to bid a higher price.
"Buyers competing with cash investors have to come in with strong offers at asking price, and perhaps slightly over asking price," Arvin Sahakian, a real estate broker in California, told the outlet.
If you do not want to go over the asking price but you still want to score that house in the market, a preapproval or pre-underwriting letter may increase your chances of winning against a real estate investor.
The outlet further noted that investors have the advantage of closing in quickly because of their all-cash offer; however, a conditional approval will help you gain an advantage.
"A conditional approval is the closest offer to cash... At the end of the day, the seller receives a wire transfer in their bank account," says California real estate agent Nicole Wilhelm.
