Empower Your Offer in a Sizzling Real Estate Market!

Empowering your offer

As a seasoned real estate professional, I often consider the market conditions to keep myself, and my clients, up to date with how the market is currently behaving. Anyone in real estate these past several years can attest that the market has been anything but predictable. With higher interest rates, we should see a natural reduction in home values. However, the lack of inventory and steady demand has kept prices steady and even rising in some markets. Here in New Hampshire, while the number of transactions has certainly fallen off, it has less to do with waning demand and more to do with a lack of properties coming to market.

It is quite frustrating for buyers who have been looking for, in some cases, several years but have been outbid or overlooked because they are not paying cash or waiving contingencies, a practice that comes with a great deal of risks.

I look back to when I bought my first home. It was 2005, and the market was equally on fire. “There’s nowhere to go but up!” exclaimed many as they paid way over asking, no contingencies, all cash, quick close, or even worse, there were the mortgage companies offering loans to way underqualified buyers that, in hindsight, created a ticking time bomb. Many mortgage brokers were telling their clients that if they got into financial trouble, they could just sell their home and take a profit… What could possibly go wrong?

Well… as we all know now, in the latter part of 2008, we found out exactly what could go wrong. It was a financial blood bath that, even to this day, many people still feel. But did we learn our lesson? In many ways, yes. Legislation, for good or for bad, has been enacted to help prevent another crash of that scale. Banks are far more conservative, as well.

But I want to get back to non-cash and first-time home buyers. In our current market, it feels impossible to be competitive when you’re up against cash buyers willing to purchase over asking and with no contingencies. On top of that, home values are at all-time highs, even compared to inflation, making it even harder to qualify for a home loan for a house that actually suits your needs. And now, we are facing climbing interest rates making even the average home unaffordable for many. For an added kick in the pants, we are seeing record-high rental rates and inflation further compounding the inability to save up for a substantial down payment. I’ve had many conversations with frustrated buyers who are ready to just give up. I really do feel for them.

But there is hope. I know it may feel impossible, but here are some ways you, as a non-cash, or first-time home buyer, can help position yourself to be a more competitive buyer.

Educate Yourself

Familiarize yourself with real estate terminology, the home-buying process, and market trends. Websites, podcasts, books, and seminars can be valuable resources. Please don’t watch “The OC” and expect to learn about real estate. Great show, but not exactly educational.

Hire an Experienced Realtor

An experienced realtor can guide you through the process and give insights into local market dynamics. They can also help guide you through writing an offer and what to consider regarding timelines, contingencies, and other important issues to consider.

Get Pre-Approved

Secure a mortgage pre-approval, not just a pre-qualification. This gives you a clear idea of your budget and signals to sellers that you’re serious and financially ready.

Increase Earnest Money Deposit

Offering a larger earnest money deposit can demonstrate your commitment to the purchase. This may mean taking more time to save, but this will absolutely help you in both the competitiveness of the offer and reduce the amount financed which can reduce your monthly payment. Keep in mind, that any earnest deposit you commit will ultimately be applied as your “down payment” for your mortgage and reduce the amount financed. If you can get to 20% of the appraised value, it will also save you from paying for private mortgage insurance which will further reduce your monthly payment.

Get Financial Help

For some, part of the challenge they face is debt-related. This can substantially reduce the amount of the mortgage you qualify for.  I highly recommend working with a credit counselor. These professionals offer invaluable guidance on budgeting, debt reduction, and credit management. They’ll provide personalized advice tailored to your financial situation, helping you make informed decisions and set achievable goals. Whether you’re overwhelmed by debt, seeking to improve your credit score, or simply wanting to fortify your financial literacy, a credit counselor can be a transformative ally.

Stay Ready

In a hot market, properties can get offers within hours of being listed. Be prepared to view homes quickly and make decisions promptly. This is absolutely crucial in the current market. Sometimes being ready to strike makes all the difference in the world.

Stay Calm and Avoid Emotional Buys

It’s easy to get caught up in bidding wars or to feel pressured to buy. Always stick to your budget and remember that overpaying now can lead to financial constraints or, even worse, later. This should apply to any purchase, but especially a house. What’s worse is if you buy a home and a month later, the furnace goes, or the roof begins to leak. Inspections can mitigate a lot of risks, but it’s never foolproof.

Consider Less Competitive Neighborhoods

Expanding your search area or considering up-and-coming neighborhoods might mean less competition. This is especially true if you are a first-time home buyer. A starter home in a less desirable area may be a good way to build equity and give you more time to save for your dream home.

Stay Persistent and Optimistic

Don’t get discouraged by missed opportunities. The real estate market is dynamic, and new listings will always be available. Sometimes patience can lead you to the perfect home.

Lastly, and this is not just because I specialize in land, consider buying land and building. Land is also in short supply, but in many cases, it’s easier to find a lot in the right location than it is to find an existing home in the right location. And don’t overlook modular homes. Modulars are returning in popularity as finding suitable housing has become seemingly impossible to find. They can be erected, in many cases, far quicker than a traditional site-built home.

 

In conclusion, navigating a hot real estate market can be an intimidating endeavor, especially for those unacquainted with its feverish pace and competitive nature. However, becoming a more attractive buyer isn’t solely about having the highest bid. It’s about diligence, preparedness, and demonstrating genuine interest and reliability. By securing pre-approval, aligning with seasoned professionals, and remaining flexible in negotiations, you can distinguish yourself in a sea of offers. Remember, every seller seeks not just the best price but also the smoothest transaction. By positioning yourself as both motivated and dependable, you increase the likelihood of landing your dream property, even in the most competitive markets. In the end, preparation and perseverance will be your strongest allies on this exciting journey.

Randy Miller is a Sales Associate with Roche Realty Group in Meredith, NH

This article was written by Randy Miller. Randy is a sales associate at Roche Realty Group with offices in Meredith and Laconia, NH, and can be reached at (603) 279-7046. Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market

Needs and Wants When Buying a Home Balanced

Balancing Needs and Wants When Buying a Home

In the current housing market, where choices are often limited, and demand frequently outstrips supply, ...
Read More →
Only two homes for sale at South Down Shores and Long Bay on Lake Winnipesaukee pictured above

Spotlight on Homes: New Hampshire Market Analysis

At present time, there are 1,007 single-family homes for sale in New Hampshire. The median ...
Read More →
New Hampshire Ranks High in Recent Studies

New Hampshire Ranks High in Recent Studies

Every day in our industry, we see how rising home prices have made it more ...
Read More →
South Down Shores Barn Complex Transformation

South Down Shores Barn Complex Transformation

In 1981, the transformation of Laconia’s scenic South Down Farm began, converting the former 126-acre ...
Read More →
Massachusetts and New Hampshire - a Tale of Two States

Massachusetts and New Hampshire – a Tale of Two States

Most of my articles talk about housing, trends, home values, and the desirable lifestyle we ...
Read More →
Spring flowers at the Belknap Mill in Laconia, New Hampshire

Spring Trends in Lakes Region Properties

It’s been one of those winters, or should I say lack of winters, that we ...
Read More →
Sales Snapshot: The Current Highest Prices Property For Sale in The Lakes Region Is on Governor's Island for $12,998,000

Sales Snapshot: New Hampshire’s Affordability Challenge

As we spring into March and approach our busy spring selling season, I thought I’d ...
Read More →
Gunstock Mountain in Gilford, NH

Gunstock: Gem of the Lakes Region

Nestled among the stoic peaks of the Belknap Mountain range in the heart of New ...
Read More →
Roche Realty Group Announces Top Producers for 2023

Roche Realty Group Announces Top Producers for 2023

Meredith — Frank Roche, president of Roche Realty Group, announced the top five producers for the ...
Read More →
AI and the Future of Real Estate

AI and the Future of Real Estate

Imagine, if you will, looking at a mysterious picture box filled with a whole world ...
Read More →
Prices rise Broadview Condominiums originally sold to the developer for $500,000

Prices Rise Ahead of Super Bowl Sunday

We’ve got a great match coming up for this year’s Super Bowl…The 49ers vs. the ...
Read More →
Smart Moves in Condominium Ownership Samoset

Smart Moves in Condominium Ownership

Here in the Lakes Region, a good part of our residential housing inventory is in ...
Read More →
Land Sales Unveiled: New Hampshire's 2023 Market

Land Sales Unveiled: New Hampshire’s 2023 Market

New Hampshire The Granite State… true to its motto, “Live Free or Die”, which encapsulates ...
Read More →
Exploring Cash Sales Dynamics in Lakes Region Real Estate

Exploring Cash Sales Dynamics in Lakes Region Real Estate

I was at a sales meeting at Roche Realty Group the other day, and we ...
Read More →
Roche Realty Meredith

Roche Realty Group Reports Over $150 Million in Sales

               Meredith- Frank Roche, President of Roche Realty Group, Inc., ...
Read More →
Lincoln, New Hampshire Riverwalk Resort

Lincoln, New Hampshire: From Mill Town to Ski Destination

Tucked in the heart of New Hampshire, sprawling across 131 square miles of varied terrain, ...
Read More →
Lakes Region Towns Stand Out For Their Spirit of Giving

Celebrating the Spirit of “Giving” in the Lakes Region

Nestled in the picturesque landscapes of New Hampshire, the Lakes Region stands out not only ...
Read More →
AI's Impact on the future of real estate

Real Estate’s Future: The Impact of AI

The other day, I was talking with my son Chris about the changes in the ...
Read More →
NH Lake Sales Activity - picture of lake with mountains and homes

Lakes Region Waterfront Sales 2022 vs. 2023

We’re getting near the end of the year, and I thought I would pull up ...
Read More →
Winter Snowmobile

Real Estate in a Winter Wonderland

As I drove around the other day with my kids, I was looking at some ...
Read More →
Toys for Tots Drive

Roche Realty Host Annual Toys for Tots Drive

As the holiday season approaches, Roche Realty Group is excited to announce the kickoff of ...
Read More →
Small Business Saturday New Hampshire

Small Business Saturday Living Gratefully in New Hampshire

We have so many things to be thankful for here in New Hampshire: plenty of ...
Read More →
Annie Brown Joins Roche Realty Group

Annie Brown Joins Roche Realty Group

Meredith — Frank Roche, President of Roche Realty Group, Inc., with offices in Meredith and ...
Read More →
Gunstock Mountain in Gilford, NH

Gunstock Upgrades for Winter as Real Estate Shows Resilient Growth

As the leaves of New Hampshire’s forests transition from the vibrant hues of fall to ...
Read More →
Preserving New Hampshire's Lakes

Preserving New Hampshire’s Lakes: A Community Effort

With over 250 lakes and ponds throughout New Hampshire’s Lakes Region, there are unlimited outdoor ...
Read More →
Home Inspections — The Uninspected Abode: A Spine-chilling Tale of Regret and Terror!

The Uninspected Home: A Spine-chilling Tale of Regret and Terror!

One night, not many years ago, in a quaint, somber town nestled amidst the haunting ...
Read More →
Interest Rates

Interest Rates Impacted by Treasury Yields

It looks like the national picture for housing stats has not improved in recent months; ...
Read More →
Local Housing Crisis: Challenges and Solutions

Local Housing Crisis: Challenges and Solutions

Our communities are facing a shortage of both residential and commercial properties, a scenario that’s ...
Read More →
Fall Splendor In New Hampshire

Fall Splendor in New Hampshire

New Hampshire in the fall is akin to stepping into a live canvas painting — ...
Read More →
Samoset Condominiums on Lake Winnipesaukee

Condominium Sales Surge in New Hampshire’s Lakes Region!

As we start entering October’s bright fall colors, I thought I’d take a look at ...
Read More →
Empowering your offer

Empower Your Offer in a Sizzling Real Estate Market!

As a seasoned real estate professional, I often consider the market conditions to keep myself, ...
Read More →
Reviews of New Hampshire's Lakes Region

Reviews of New Hampshire’s Lakes Region

We’ve had a great summer in New Hampshire’s Lakes Region, and we’re approaching the brilliant ...
Read More →
Waterfont Sales Activity Wolfeboro, New Hampshire

Waterfront Sales Activity in the Lakes Region

As we head into September, I have compiled data and insight into what is happening ...
Read More →
Labor Day Weekend

Labor Day Weekend in The Lakes Region

Labor Day Weekend has arrived, and the weather forecast for the Lakes Region looks fantastic, ...
Read More →
Interest Rates

The Mortgage Interest Rate Dilemma

This past week, we saw an increase in mortgage rates following a rise in bond ...
Read More →
Best State To Live In — New Hampshire at #3

New Hampshire 3rd Best State To Live In!

WalletHub just released its rankings of the best state to live in for 2023. It’s ...
Read More →
City/Town Comparison can make the research process easier

City/Town Comparison For Your Move

Some studies place moving to a new location as one of the top ten most ...
Read More →
New Hampshire Real Estate Lacks Inventory

New Hampshire Real Estate Inventory Crisis

A Multifaceted Analysis of Rising Interest Rates and Beyond New Hampshire is currently facing a ...
Read More →
Peaks of New England

Exploring the Peaks of New England

In my younger years in school, I always loved geography. Living in New Hampshire, there ...
Read More →
Climate Exodus: Insurance Companies Seeking Refuge from High-Risk Sates

Climate Exodus: Insurers’ Fleeing High-Risk States

Flooding, Forest Fires, Heat Waves, Tornados, oh my! The recent stretch of weather has certainly ...
Read More →
Real Estate News Headlines - Lakes Region NH

Real Estate Tidbits to Consider

Here are a few real estate tidbits I’ve pulled to keep you up to speed ...
Read More →
Roche Realty Group Sells out Lakeside at Paugus Bay

Roche Realty Group — 6 Months in Review

Closed sales for the first 6 months of 2023 have been impressive at Roche Realty ...
Read More →
Newfound Lake

Lakes Region Waterfront Sales Activity 6 Month Comparison

Below you will find data and insight into what is happening in sales activity on ...
Read More →
Buying Land

Buying Land in New Hampshire — Comprehensive Guide

New Hampshire, also known as the Granite State, offers a diverse landscape that includes picturesque ...
Read More →
Weirs Beach: A Tale of History, Community, and Natural Beauty

Weirs Beach: A Tale of History, Community, and Natural Beauty

As we celebrate the 100th anniversary of the oldest bike week in the country, let’s ...
Read More →
First Five Months of Lakes Region Real Estate

Five Months of Lakes Region Real Estate Activity

The month of May’s real estate statistics just came out for New Hampshire, and it ...
Read More →
A bird's eye view of Long Bay on Lake Winnipesaukee

South Down Shores and Long Bay on Lake Winnipesaukee — Its History

When construction started in 1981, Laconia’s South Down Farm offered a picturesque setting for condominium ...
Read More →
Memorial Day — rows of gravestones with flags in military cemetery

Memorial Day Weekend Arrives in the Lakes Region!

The long-anticipated Memorial Day weekend has arrived after a long winter, and the Lakes Region ...
Read More →
Unlike the dandelions new listings aren't popping up in the Lakes Region

Will Listings Start Bloom Like Dandelions?

Will Real Estate Listings Bloom Like Dandelions? During my rides around the Lakes Region, I’ve ...
Read More →
boat launch

Public Boat Launches in the Lakes Region

New Hampshire’s Lakes Region is a paradise for boating enthusiasts and we are now entering ...
Read More →

Leave a Comment