The wild world of real estate has seen many cash buyers for years, but the move of people from more expensive states over the past year to less expensive states has aggravated this issue. Whether you're going up against an investment company snapping up properties to increase their rental inventory, or whether you're surrounded by people with hefty profits from previous home sales offering cash for a new home, the situation looks bleak.
However, it's not impossible. People have still been able to buy homes even if they can't plunk down hundreds of thousands of dollars in cash. In some cases, they're grabbing whatever houses they can, or they're agreeing to contract terms that aren't that good. You may not have to go this far if you take a few steps first.
Be Extremely Patient
You have to be very patient. Look at houses that you want but can't buy (because someone else got to them first) as just minor issues. This is going to be a numbers game in a way, so be patient, keep looking, give yourself time, and work with your agent to find all the listings you can. This doesn't mean you should move slowly; you should try to see listings as soon as possible. However, don't expect to buy something immediately, and don't get frustrated if you encounter house after house being bought before you have a chance to see it. The market changes a lot in a short amount of time.
Identify Your Core Needs
Identify your absolute core needs in a house. Do you need a quiet neighborhood? Do you need a yard for dogs? Do you need something within walking distance of markets because you don't have a car? Do you need something with a driveway and garage, or are you OK with street parking? The more efficient you can make your list, the easier it will be to find homes that you have a chance at buying. Yes, you might want room for a pool table, but is that an absolute deal-breaker if the house you see doesn't have it, or is that something you can work around? The more requirements you have, the longer it will take to find a home that you have a chance of getting before anyone else.
Be Open to Different Areas
You might need to be in a certain city because of your job or near a certain school because of the ratings. But if there's any way to open up the range of areas where you're willing to look, do so. If you work remotely and rarely need to be in the office, for example, you might be able to look in neighboring counties, where housing is easier to get. If you don't have kids, don't worry about schools and good play areas in parks. Make the geographical locations you look in as wide as you can.
While this advice works for general home-buying, it's essential to follow it if you're competing with all-cash buyers. Those buyers may not be interested in a house with no off-street parking, for example, so if you're OK with it, there's a house you might be able to buy before anyone else gets to it. Your agent will help you.
Contact a real estate agency like The Dave Hooke Team: Keller Williams of Central PA to learn more.