WE WENT TO THE EXPERTS AND WE
STUDIED THE MARKET TO GET TIPS
ON HOW YOU CAN MAKE THE WINNING
OFFER.
>> MORTGAGE INTEREST RATES ARE
SPIKING.
>> INFLATION IS GROWING FASTER.
>> HOW SALES ARE UP MORE THAN 44
AMERICAN.
>> BETWEEN RISING INTEREST RATES
AND INFLATION, IT'S GETTING
HARDER TO UNLOCK THE AMERICAN
DREAM OF OWNING A HOME.
THE MEDIAN EXISTING HOME SALES
PRICE IS UP TO $367,000, THAT'S
A 15% INCREASE FROM LAST YEAR.
WHILE FEBRUARY HOME SALES WERE
ACTUALLY DOWN #2.4%
YEAR-OVER-YEAR, BUYERS ARE NOT
GETTING A BREAK.
>> HOW WOULD YOU DESCRIBE THE
REAL ESTATE MARKET RIGHT NOW?
>> IT IS A SAVAGELY UNHEALTHY
MARKET.
BY THAT I MEAN WE HAVE
EXTRAORDINARY DEMAND AND VERY
LITTLE PRODUCT.
>> Reporter: STACY ESSER WHO
RUNS THREE REAL ESTATE OFFICES
IN NEW JERSEY SAYS THE AVERAGE
HOME IN HER AREA IS RECEIVING 10
TO 15 BIDS, WHICH MEANS WHEN ONE
DOOR CLOSES ANOTHER ONE ROEBLPRO
WILL TOO.
SINCE THE PANDEMIC BEGAN, 50
MILLION AMERICANS HAVE EITHER
SHOPPED FOR A HOUSE OR ATTEMPTED
TO BUY ONE WITH ONLY 30%
ACTUALLY CLOSING A DEAL.
>> HOW DO YOU MENTALLY PREPARE
BUYERS FOR THIS MARKET?
>> WE'RE REAL ESTATE AGENTS AND
WE DO A LOT OF THERAPY BECAUSE
IT IS EXHAUSTING.
>> Reporter: THE MARKET HUMBLING
EVEN THE MOST QUALIFIED BUYERS
AS THEY GROW FATIGUED AND
CONDITIONED TO ACT FAST.
>> THE PRESSURE TO EXECUTE SO
QUICKLY DEFINITELY WEIGHS ON
YOU.
>> JACQUELINE AND ADAM CURRENTLY
LIVE IN LOS ANGELES, BUT WITH
BABY NUMBER TWO ON THE WAY THEY
WANTED TO MOVE CLOSER TO FAMILY
ON THE EAST COAST.
AFTER GETTING OUT BID ONCE
BEFORE, THEY WERE READY TO
STRIKE LANDING THEIR NEW HOME
SIGHT UNSEEN.
>> AFTER THE PURCHASE WENT
THROUGH IS WHEN I WENT TO CHECK
IT OUT, AND LUCKILY IT LOOKED AS
GOOD IN PERSON AS IT DID IN THE
PICTURES.
>> Reporter: COURTNEY KLEIN AND
HER HUSBAND HER MAN SANCHEZ BID
ON FOUR OTHER HOMES BEFORE
FINALLY WINNING THE FIFTH BUT
ONLY AFTER INCREASING THEIR
PRICE RANGE AND OFFERING TO FORE
GO A HOME INSPECTION OF, WHICH
IS NOT RECOMMENDED.
>> YOU DIDN'T GET THIS HOME ON
YOUR FIRST TRY.
>> YES, WE WERE NOT THE FIRST
OFFER.
THEY HAD ALREADY ACCEPTED AN
OFFER PREVIOUSLY AND THAT DEAL
FELL THROUGH I THINK BECAUSE OF
THE REPAIRS OF THE ROOF THAT WE
ENDED UP DOING.
>> Reporter: ALONG WITH
COMPETITION, BUYERS ARE TRYING
TO BEAT THE FED HIKES.
ESSER SAYS FOR EVERY POINT
MORTGAGE RATES CLIMB, YOU LOSE
ABOUT 10% OF YOUR BUYING POWER.
>> IF THIS MARKET IS TOO HOT FOR
YOU TO HANDLE AS A BUYER, SHOULD
YOU SIT IT OUT?
SHOULD YOU WAIT?
>> I DON'T THINK THAT WAITING IS
ACTUALLY THE BEST BET.
BUYING A HOUSE IS THE BEST HEDGE
AGAINST INFLATION, AND IT GIVES
YOU SOME CONTROL OVER THE
BIGGEST COST THAT YOU HAVE,
WHICH IS SHELTER.
>> Reporter: FOR BUYERS LOOKING
FOR THEIR WINDOW OF
OPPORTUNITY,ESSER SAYS UPDATE
YOUR LOAN PREAPPROVAL AS
INTEREST RATES CHANGE OR IF YOU
CAN, ASK THE BANK FOR UPFRONT
UNDERWRITING.
>> THE UNDERWRITING PROCESS
TAKES YOU A LOT FURTHER THAN
JUST A REGULAR PREAPPROVAL,
WHICH ALWAYS MAKES A SELLER FEEL
MUCH MORE CONFIDENT.
>> Reporter: SHE ALSO SAYS SHOP
10% BELOW BUDGET SO YOU'RE READY
TO PAY ABOVE THE LISTING PRICE.
EXPAND YOUR SEARCH CRITERIA IN
TERMS OF SIZE AND LOCATION, AND
FINALLY WHEN YOU FIND A HOME YOU
LIKE, TRY TO MAKE A LARGER DOWN
PAYMENT, OFFER A FLEXIBLE
CLOSING DATE AND LIMIT THE HOME
INSPECTION TO STRUCTURAL AND
MECHANICAL ISSUES, ALL TIPS TO
MAKE AN OFFER THAT CAN'T BE
REFUSED.
>> YOU JUST SAID MAYBE LIMIT THE
HOME INSPECTION.
WE HEARD FROM THAT GUY IN THE
PIECE THERE WHO DECIDED TO
FOREGO THE HOME INSPECTION
ALTOGETHER.
WHAT DO EXPERTS SAY ABOUT THAT?
>> DEFINITELY NOT RECOMMENDED.
THE SELLER WAS REALLY UPFRONT
AND HE SAID THE ROOF NEEDS
REPAIRS.
THAT'S WHY THEY FELT
UNCOMFORTABLE.
OBVIOUSLY THEY HAD ALREADY BID
ON FOUR OTHER PLACES AND LOST
THEM.
DO NOT GET HUNG UP ON COSMETIC
OR SMALL REPAIRS.
YOU WANT TO LOOK FOR THINGS
EXPENSIVE TO REPLACE LIKE THE
HVAC SYSTEM OR THE ROOF.
ASK FOR THE MAINTENANCE RECORDS
FOR THE HOME.
THAT GIVES YOU AN IDEA OF HOW
WELL IT HAS BEEN CARED FOR.
EXPERTS SAY YOU SHOULD GET THAT
INSPECTION AS A BUYER.
>> I CAN'T BELIEVE THE COUPLE
THAT BOUGHT THE HOUSE WITHOUT
EVER SEEING IT.
TOO RICH FOR MY BLOOD.