Buying in a HOT Sellers Market – 3 Question

[Minh Nguyen]

I didn't see any post like this recently on BP forums so I thought I'd ask.

1.) Its obviously a very hot market right now and one of my options is to find a house that's been on the market for too long (90+ days) and give an offer that I think makes more sense. I'm thinking possibly 20-25% less than asking price. While trying to find an edge, I read an article on BP and being a newbie I don't quite understand how to do this

"...Let the seller know that you can get it done faster than everyone else by having your lender call them after putting in a bid, and tell them you can close fast (2-3wks)." – Could someone help me with this concept?

2.) And besides being able to close faster. Are there other ways to create an edge or make myself more attractive to the seller? 

3.) My only other option besides putting offers on homes that have been on the market for too long is to wait for a Housing Market Correction. I would love to hear what experts and investors on the BP Forums think/speculate about a housing correction. Will it happen? When? How hard will it hit housing prices?

4.) Are there other options I haven't thought of? I feel that I'm too green to take on an out-of-state rental property.

Thank you in advance for your time BP members.

- Minh

[Evan Wiesner]

On the offering side, I would eliminate as many variables as possible. Inspection periods, finance contingencies, even just shortening the days needed to close can help put you in front of other offers. If you can't secure cash then you need to find a way to get your financed funds quickly.

To point 1, whoever you are borrowing from should furnish a letter and be willing to talk to the seller to explain how fast they can close your deal. That reassurance should help.