The year is early 2006. The market is on fire. Homeowners are listing their houses and selling overnight and for top dollar. Are we experiencing déjà vu? Might as well be because that is exactly what is happening today, in 2021. No doubt it’s the result of Covid 19, which had the market plummeting in March of 2020 only to make an about face by the summer of that same year.
So what does this mean for buyers? After having the upper hand for almost 15 years, now buyers are finding themselves in bidding wars, paying significantly over list price, forgoing inspections, everything shy of giving away their first born, and still not getting the coveted houses they are pursuing. Inventory is low and demand is high. Our Nutmeg state has been attracting New Yorkers who not only want a reprieve from the city but realize they can just as easily work from home so why not work in the bucolic countryside that is Connecticut.
So if you are buying, how do you stay competitive while in hot pursuit of your next abode? As a buyer you need to be diligent in getting out quickly to view new listings. More often than not, there will be a cut off for offer submission so be ready. Have an updated pre-approval from your lender or, if you are in a position to pay cash, have a recent proof of funds ready for submission with your offer. A couple other things that may give your offer some leverage, try submitting a considerable initial deposit rather than just the typical 1%. It shows the seller you are serious and motivated. Another very effective practice is to submit an escalation clause with your offer to purchase. An escalation clause can give your offer the boost it needs without needlessly overpaying.
Buyers must stay focused, diligent and keep their eye on the prize.