How to Navigate a Competitive Real Estate Market as a Buyer

Home buying isn’t fun right now.

Between historically low inventory, skyrocketing prices, and mountains of competing offers, searching for a property has become a wasteland of all-cash offers and bids far over asking.

If you walk into your next search without a battle plan…

You’re going to lose. And you’ll keep losing until you do something different.

But here’s the deal.

It is possible to navigate a competitive real estate market as a buyer. When you’ve got the winning strategy and tactics on your side, you can still land your dream property — even when it feels like no homes are available to you. Successful buyers aren’t necessarily the ones writing the biggest checks. They’re the ones who show up ready to win.

And they know that sometimes the best way to win is to stop fighting over the same listings everyone else is seeing.

When motivated sellers need to sell inherited property fast, they don’t always want to list. They want to deal directly with a buyer — and get the transaction done quickly. Working with experienced Texas home buyers who partner directly with motivated sellers is one of the best ways to see off-market properties before they ever hit the market — and it’s ideal for buyers who are frustrated with losing bidding wars.

Smart.

Don’t you think?

Here’s what’s covered:

Why the Market Is So Competitive Right Now
Get Pre-Approved Before Looking at Properties
Make a Killer Offer (Even in Hot Markets)
Making Offers Faster Than Your Competition
Going Direct With Off-Market Properties

Why is The Market So Competitive Right Now?

Listen to the numbers.

Zillow recently reported there are 5.5 active home shoppers per for-sale listing in the US — that number is closer to 10 buyers per listing in ultra-competitive markets like Buffalo and Boston.

Combine crazy low inventory with a buyer pool that’s older and more financially prepared than ever, and you’ve got yourself a frenzy.

First-time buyers? They now make up only 21% of buyers nationwide, the lowest percentage since NAR started tracking this data in 1981.

If you’re walking into this market without a plan…

You’re already on the back foot.

Focus on positioning yourself as the best possible buyer instead of just finding “the one.” Shift your perspective, and everything else falls into place.

Get Pre-Approved Before You Look at Properties

There is no jumping the gun quite like this one.

If you walk into a sellers’ market without a pre-approval in hand, forget about it. You might as well slap a “lowball offer coming” label on your chest and wave goodbye to your dream home.

Pre-approval doesn’t just show sellers you’re serious. It tells them you’re financially qualified, able to close on time, and unlikely to back out of the deal for reasons related to financing.

Remember: Pre-approval is not the same as pre-qualification. A pre-qualification merely estimates how much you can afford. Pre-approval is a thorough look at your income, credit, and assets. Always get pre-approved.

Finish line number one. Cross it before you do anything else.

Make a Solid Offer (Even When it’s SUPER Competitive)

Ok, you’re pre-approved.

But you show up to make an offer and throw out a number with no game plan.

Now what?

You offer too low. The seller rejects your offer, and your dreams are crushed.

This is where most buyers drop the ball.

Offering isn’t just about how much you’re willing to pay — although that is important. There are tactics you can employ to make your offer stand out from the rest.

Here are just a few:

Offer more than asking (calculated, of course). Asking price is rarely the final price in a hot market. Sellers know it and so should you. Research the sold prices in your target market before making a move.
Keep contingencies to a minimum. Too many contingencies scare sellers. Cut whatever you can. But don’t put yourself in a bad spot financially.
Write the seller a letter. Old school, sure. But sellers are people too. If your offer is on the line with another, a personal letter can be the tipping point.
Be flexible on your closing date. Learn what the seller needs and match it. If you can close in 30 days but the seller needs to close in 45, ask if you can make that work. It might cost you a few grand on the price, but it’s better than losing the home altogether.

Need your offer to stand out from the crowd? Focus on more than just price.

How to Move Quickly Without Making Mistakes

Speed is critical.

But rushed, unprepared buyers make mistakes.

The house comes on the market. A prepared buyer spends 24–48 hours reviewing and making an offer. An unprepared buyer takes three to four days just trying to get their ducks in a row. By day four, the home is already under contract.

Don’t be that buyer.

Here’s how to stay a step ahead of the competition.

Study your target markets like your life depends on it. Know every statistic about where you want to buy before you start looking. Know what homes are selling for. Know how long homes are staying on the market. Know what “reasonable” looks like.

Line up your inspectors. Have home inspectors and contractors in mind before you find your dream home. Don’t start scrambling when time is of the essence.

Set up real-time alerts. Use every listing service’s custom alert technology to your advantage. Set alerts for the moment a property that fits your criteria hits the market, and act immediately.

Work Direct With Off-Market Sellers

Finding great properties in hot markets isn’t impossible. You just might have to go off-market to get them.

Think about it: Selling a house means publicly committing to years (or decades) of financial obligation. Not everyone is thrilled at the thought.

When private sellers need to sell inherited property fast, or cut their losses and move on, they look to private investors first. Many sellers want to skip the listing process altogether, and work directly with a buyer to get the job done.

There are three common types of sellers looking to sell direct:

Heirs who don’t want the property but need to sell inherited property fast
Distressed sellers who need to sell their homes as quickly as possible
Landlords looking to wash their hands of the property completely

Work directly with cash buyers, and you’ll have access to countless off-market deals that don’t require bidding wars.

If you’re going to step around the competition, look for off-market deals.

Skip the Inspection? Nope. Don’t Be That Buyer.

Okay, so you found your dream home. Bidding war ensues.

What do you do? Probably waive your inspection to make your offer more attractive.

Don’t be that buyer.

Waiving your inspection is lazy. Yes, even in this market.

You don’t have to waive your inspection to write a competitive offer. Get pre-inspections. Do your due diligence beforehand, and you’ll still be able to move swiftly without eating the cost of a home inspection later.

Talk to your agent about doing a pre-offer inspection, or ask the seller if they’ll provide you with a recent inspection report.

Act fast. But don’t be foolish.

That’s All Folks!

Sure, today’s real estate market is frustrating. But if you know how to position yourself, buying in any market can be smooth sailing.

Winning buyers don’t waste their time Internet browsing. They:

Get pre-approved
Know how to make a killer offer
Are moving quickly — without making amateur mistakes
Look for off-market deals to avoid the competition

This market isn’t for everyone.

And that’s why you’ll win.

When you’ve got the right strategy, resources, and know-how, there’s no challenge you can’t overcome. Ready to buy? Get into your dream home before everyone else catches on.

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James Hook