While the pandemic-fueled home-buying frenzy is over, it is not easy to buy a home
this spring. Working against buyers is the affordability crunch and higher mortgage
rates. But well-prepared buyers willing to make certain concessions may be in a
favorable position.
Here are four strategies for how buyers can boost their odds of getting a house this
spring:
1. Consider reasonable concessions. Buyers received concessions in 42% of home
sales in the 4 th quarter, up from 31% a year earlier according to Redfin.
2. Line up financing. Cash offers and strong financing continue to often win out
over higher offer prices. Aim for a down payment of 20%. Some lenders have
programs that enable buyers to become approved before an offer is made. This can
be attractive to a seller over a simple pre-approval letter that hasn’t been through
underwriting.
3. Dig up old listings. Check on properties that were taken off the market. Consider
homes that have sat on the market for more than 2 months and offer a discount,
according to Lawrence Yun, chief economist at National Association of Realtors.
4. Work with your Realtor to include privately held properties in your search. Some
companies that buy and flip homes have a glut of homes in inventory and might be
willing to negotiate to get them off their books. Your agent can help you navigate
this process.
