Essential strategies that can help buyers succeed in 2024’

In today’s fast-paced real estate market, buyers need to adapt quickly. Here’s a rundown of essential strategies that can help buyers succeed in 2024’s competitive environment:

1. Craft a Competitive Offer
   Offering below the asking price isn't usually an option for homes that have been on the market for less than two weeks. However, for properties sitting for over 30 days, there's room for negotiation. Each offer should be tailored to the specific property.

2. Use an Escalation Clause
   An escalation clause is a tool that allows you to increase your offer in response to competing bids automatically. For example, if you're bidding $300,000 on a house but want to stay competitive, you might offer to increase your bid by $5,000 over the highest offer, up to $330,000. This helps ensure you remain in the game without offering too much upfront.

3. Inspection Contingency Tactics
   When writing an offer, it's important to include an inspection contingency that covers major areas like HVAC, plumbing, and more. A good tactic is to set a threshold (e.g., requesting repairs only if they cost more than $2,000). This tells the seller you're serious about the property and not likely to back out over minor issues.

4. Appraisal Guarantee
   In today's market, prices are often ahead of appraisals. Offering an appraisal guarantee means you’re willing to make up the difference in cash if the bank’s appraisal comes in lower than the agreed price. This can make your offer more attractive to sellers worried about low appraisals.

5. Increase Your Good Faith Deposit
   Typically, a buyer puts down 1% of the purchase price as a deposit. If you want to stand out, consider increasing this amount. For instance, instead of a $3,000 deposit on a $300,000 home, offering $5,000 or more shows the seller that you're committed to the deal.

6. Offer Post-Closing Occupancy
   With inventory levels low, sellers may be concerned about finding their next home. Offering them post-closing occupancy, meaning they can stay in the house for a period (e.g., 30 days) after the sale closes, could make your offer more attractive.

7. Work with a Respected Agent and Local Lender
   Having a real estate agent with a strong reputation and working with a local lender can make all the difference in a competitive market. Sellers and listing agents look for offers that will close smoothly, and having a trusted agent and lender on your team can boost your chances.

With the right strategy and team, you can position yourself for success in 2024's market. Each tactic outlined above ensures you remain competitive without stretching beyond your means.