Buyer FAQs in a Competitive Market
How do I compete in a Seller’s Market?
To succeed in the Twin Cities seller’s market, you need to:
Get your finances in order with a pre-approval (or proof of funds for cash)
Work with a knowledgeable agent
Act quickly on new listings
Submit strong offers with smart terms
Stay flexible about features and price points
What makes a strong offer in a seller’s market?
A strong offer usually includes:
A competitive price based on comparable sales
Terms that appeal to the seller, such as a quick closing or fewer contingencies
Good communication with your lender to ensure a smooth process
Some buyers also consider options like appraisal gap coverage or waiving inspection contingencies, but only if they are comfortable with the risks. Always discuss these with your agent and lender first.
Why do I need to get pre-approved before I start looking at homes?
A mortgage pre-approval shows sellers that you are a serious buyer who can actually afford the property. It also helps you understand your budget before you fall in love with a home that’s out of reach. Most sellers will not consider an offer without a pre-approval letter.
If you are paying cash, be ready to show proof of funds (such as a bank statement or a letter from your bank). Keep in mind that a seller’s agent may contact your lender or banker to confirm the details, so choose a lender you trust and communicate with them regularly.
How fast should I move when I find a house I like?
Quickly. In this market, hesitation can mean losing the home. Try to see new listings on the first day they hit the market. If you are serious about a property, be ready to submit an offer right away.
Your agent should also connect with the seller’s agent quickly to learn about deadlines, seller preferences, and competing offers. Sometimes sellers even accept the first strong offer and never set an offer deadline.
Should I write a “love letter” to the seller?
Many buyers ask this, but it is often discouraged. Love letters can unintentionally create fair housing issues if they reveal personal information (such as race, religion, or family status). If you choose to write one, keep it strictly about what you like about the house—not about yourself. Some sellers even request that buyers skip letters altogether.
Do I really need a real estate agent?
An experienced local agent can make the difference between getting the home you want and losing out. Your agent will know the local trends, guide you in crafting a competitive offer, and help you negotiate the best terms.
They also handle the mountain of paperwork that comes with buying a home. Read everything you sign, and do not hesitate to ask your agent questions along the way.
How important is flexibility when buying in a hot market?
Flexibility is key. You may need to compromise on certain preferences like style, finishes, or amenities to secure a home in your preferred neighborhood.
If you keep losing bidding wars, you might also want to adjust your price range. Looking at slightly lower-priced homes gives you room to offer above asking without stretching beyond your budget.