Covid-19 has resulted in an increased demand for housing across the country. Frisco, Texas is one of the most popular destinations for families relocating from California, Washington, Minnesota, New Jersey, New York, Illinois and other states. Thanks to record-low mortgage rates and work-from-home options, the housing market in Frisco has seen unprecedented demand. But buyers today require a lot of preparation in order to successfully buy a home in this market in Frisco. Here are a few tips for buyers trying to buy a home in Frisco in this competitive market with multiple offers presented to the seller for every sale.
1. Work with a reputable and an experienced Frisco buyer’s agent
An experienced Frisco buyer’s agent can make the process of identifying a home and getting it under contract in a strong sellers market with multiple offers easy. A good agent can come up with a strategy to submit a strong offer on your behalf taking into account your individual situation. A purchase contract in Texas contains various clauses that can be modified to make your offer stand out when competing with other offers in a multiple offer situation. Here is a list of some of the things that can be modified in a purchase contract in Texas when buying a home in Frisco.
As you can see, this list is extensive and a good buyer’s agent will know how to tweak these variables in an offer to get you under contract.
2. Be ready for long hours and multiple home tours when buying a home in Frisco
The housing market is very competitive and buyers should be prepared to look at homes as soon as they hit the market and submit an offer as soon as possible. Buyers should also be ready to look at numerous homes. The historically low inventory caused by uncertainty as a result of COVID-19 has generated fierce competition for homes in the Frisco market. Be the first one to make an offer on a home you like!
3. Be ready to pay above list price
Shortage of inventory is resulting in multiple offers for homes in the Frisco market. Buyers may be shocked to find out that it is not uncommon for sellers to receive up to 50 offers on a home for sale in Frisco today. This means that buyers need an experienced Frisco real agent who can provide them the “comparable” sales data so that the buyers can make an appropriate offer.
4. Be ready to roll up your sleeves after buying the home
Buying a resale home in Frisco is like buying a used car. The home will have a number of issues that will be listed by the inspector in the inspection report. These will include cosmetic issues, deferred maintenance issues, city code compliance issues etc. Make sure that you are ready to get the home inspected quickly and only ask for repairs if anything major like a hail damaged roof are found. You can take care of cosmetic issues and other minor issues after closing. Do not ask seller to fix small items if you want to win in this crazy market with multiple offers.
5. Offer to pay for seller’s closing costs
Both home buyers in Frisco and sellers in Frisco have closing costs in a real estate transaction. To improve your chances of buying the house in a multiple offers situation, offer to pay for the closing costs typically paid by the seller like the owner’s title policy, home warranty etc. This will make your offer for the Frisco home for sale more attractive to the sellers.
6. Get pre-approved, not pre-qualified
Get your financing in order before starting home search. Buyers in this market should work with a reputed and experienced local lender to get a pre-approval for their upcoming Frisco home purchase. The loan officer should perform required due diligence before providing a pre-approval letter to the buyer. Please note that you should get pre-approved and not just pre-qualified. Pre-qualification generally involves a quick check of buyer's credit by the lender whereas pre-approval involves verification of income, assets, liabilities and verification of all the information provided by the buyer to the lender. Buyers should try to get pre-approved instead of just getting pre-qualified from the lender to avoid any surprises in closing and to provide an incentive to the seller to pick the buyer's offer.
7. Make a large down payment
A large down payment in the purchase of the home demonstrates the financial strength of the buyer to the seller and can help the buyer beat other offers provided the buyer is submitting a competitive offer in terms of purchase price etc.
8. Keep your options open
Buyers should work with their buyer’s agent to identify various options for the home they are looking to buy in Frisco to improve their chances of getting a home in a multiple offers situation. Everyone wants to buy a new construction home but there is a shortage of newly built homes and it can be helpful to identify options for homes built in the last few years as an alternative. It also helps to consider various different cities that match your requirements instead of focusing on one or two cities for the home search. If you do not have any kids, think about town homes instead of single family homes.
These 8 tips can all have an impact on whether a buyer has their offer accepted when there are multiple offers. It’s inevitable that in a multiple offer situation, there is going to be at least one loser. The most important tip of all, which isn’t listed above, is that a buyer has a great real estate agent working on their behalf who can help them submit a winning offer!
ADDITIONAL BUYER RESOURCES
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Choosing an experienced, qualified buyer’s agent in Frisco is an important step in buying the home you want at a price that fits. And, as we’ve shown, a buyer’s agent will help you get a home in this competitive market in Frisco. As a Frisco buyer’s agent, my mission is to deliver a seamless home buying experience for our clients by combining exceptional client service, hyper local market expertise, innovative technology and savvy negotiations. Wouldn’t you like to shorten the search, find your dream home in Frisco, and avoid stress? If so, give us a call today at (469) 269-6541.
I am a CRS, GRI, REALTOR® and would love to help your clients relocating to the Dallas metro area. I cover the Dallas-Fort Worth metroplex and love working with families relocating to Dallas Fort-Worth. I help families buy and sell homes in Dallas, Fort Worth, Frisco, Celina, Prosper, Plano, Coppell, Irving, Southlake, Lakewood, Colleyville, University Park, McKinney, Allen, Flower Mound & Trophy Club. I provide services in Dallas, Collin, Denton and Tarrant counties.
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