So, my family and I have been searching for a primary residence for the past 8 months in one of the hottest real estate markets in the US. As you can imagine, its been tough as hell and we've consistently lost on every offer we submit. As this search has progressed, we have grown more and more aggressive. On this most recent bid, I nearly waived everything within reason.
We've paid for numerous pre-inspections, sewer scopes, added a 22AD (Additional Deposit in case of a low appraisal), waived financing, written a letter of introduction about my family, etc. It's starting to get expensive to simply shop. Aside from simply submitting an all cash offer and outbidding everyone through pure money - what other strategies have you guys used to buy a home? I'm nearly at a loss and thinking about moving on when the market slows down. The problem is, I don't think the market is going to slow down anytime soon.
@Marc Estepa I'm at a loss. Usually the letter of introduction (from the family) will eventually be a big help over time. That's tough...
@Benjamin Seibert , tell me about it. Initially I wouldn’t even consider a 22AD, now I’m seeing that offers won’t even be considered without it. I’ve gotten more and more aggressive and waived other things as well. I tossed in the letter and waived more and more. I’m trying to make a statement with my offer without necessarily breaking the bank. So frustrating.
@Marc Estepa @Benjamin Seibert those "love" letters border of discriminatory so no agent with a brain will use those in Washington State. other states are different, but WA is very strict with those things.
As a former realtor from WA state who represented mostly sellers, here's the other thing that matters to them: money. If you really want a property you'll need to overpay for it. simple as that. Are there exceptions where letters and waiving this and that work? sure, but 99% of the time it's all about price.
sorry. i know this is not what you wanted to hear. not all problems have solutions that make everyone happy.
Thanks @Patrick Britton - no, not at all what I wanted to hear, but I understand that it’s the reality of the market. Money always matters and I’d go as far as to say it’s the #1 variable at play in buying a house.
As for the letter, that’s interesting. I’ve held off on it until this last offer, but you’re the first person I’ve heard say they shouldn’t be used. As a matter of fact, I’ve heard of at least 4 other buyers who used them and 3 other realtors here who have actually encouraged it. I felt it was kinda cheesy, but after losing out on house after house, I figured why the hell not?
Aside from that, just looking at some creativity to get some kind of leg up on the competition. I know money is the #1 driving factor (to which I’m limited), but people coming in with other creative contingencies or waiving everything to structure a stronger offer are what I’m curious about.