Investors are buying up a lot of the real estate market, and it’s hurting homebuyers. CoreLogic found that investors made up 27% of all single-family home purchases in the first three quarters of 2021. Investors offer all-cash offers more often than other buyer segments, which is attractive to sellers because it means a fast closing and fewer issues with purchasing the house. When inventory is as low as it is now and home prices are still high, it’s become a frustrating process for homebuyers who can’t offer the same as investors. Here are some strategies for how a homebuyer can compete against investors in the Seguin real estate market.
Make an All-Cash Offer in the Seguin Real Estate Market
Some buyers have the finances to offer all cash for a house. All-cash provides appeal for sellers because of the speed and ease guaranteed instead of financing through a third party. If homebuyers don’t have the finances, there are still options. One is a cash offer program. A cash offer program will make a cash bid on your behalf, purchase the home, and rent it to the homebuyer while they seek financing. Read the other strategies below too!
Adjust Your Home Search
Austin homes prices have drastically increased in the past two years. 2021 was a record year for the Austin-Round Rock MSA. The median home price reached a record in 2021 of $450,000. That’s over a 30% increase compared to 2020! With high and competitive home prices in Austin, it might be worth considering living outside of Austin. A lower-cost housing market like Seguin or New Braunfels will help you reach your goal of homeownership. The median price for a home in Seguin in the last quarter of 2021 was $285,135. That’s almost half the price of a home in Austin!
Get Preapproved
Sellers like investors’ all-cash offer because there are no lenders or mortgage companies to coordinate with. Plus, an all-cash offer ensures no issues with financing, meaning a quicker closing. This strategy can help you compete against investors. Preapproval requires complete documentation and underwriting, so it can speed up the closing process and remove the risk of issues that a seller could be concerned about.
Make An Offer Like an Investor in the Seguin Real Estate Market
Use your competition to help you purchase your home. One strategy is to make an offer similar to an investor’s. A creative offer that makes your deal more convenient for the seller will stand out from the competition. This means offering a lease-back, choosing a lender with fast closing times, taking possession as-is, or removing appraisal and inspection contingencies.
Contact me if you need help competing in this fast-paced, competitive Seguin real estate market! I’d love to make you a Seguin or New Braunfels homeowner this year! krista@bloomrealtytx.com | (830) 305-5248
