Prospective homebuyers in Southwest Indiana and across the river in Henderson are regularly finding themselves in bidding wars as they try to navigate a tight housing market.
The Courier & Press and The Gleaner asked four area real estate agents what buyers should know right now.
Here's what they told us:
Do your homework
Prepare before you start shopping in earnest. Buyers should spend a lot of time talking to their agent and lender before hitting the market, agents agreed.
Even if you're not a first-time buyer, said Nikki Davis with F.C. Tucker Emge, don't assume you know everything. It's a much different climate now than it was five or 10 years ago.
Getting preapproval for a loan is a must.
"A seller with multiple offers is not going to wait for a buyer to get preapproved," said Stephanie Chrisman with Collier & Company of Henderson.
The bottom line: Price
Don't be afraid to offer above list price in this market.
"Be ready to compete with other buyers," said Missy Bentley of eXp Realty. "In many cases, the list price is a starting point."
That means if a $200,000 house is the very most you can afford, you should be looking in a little lower price point.
"If you’re at the top of your budget already, it’s hard to compete if the home price escalates," Bentley said.
Another reason buyers shouldn't shop at the top of their budget: Even a slight bump in interest rates could disqualify them.
Make clean, competitive offers
Buyers must "keep the offer as clean and neat as possible," said Jason Brown of Pinnacle Realty Group in Evansville.
That means not asking the seller for extras and reducing or eliminating contingencies that have to be met before the sale can go through.
"Making offers contingent on the sale of an existing home in this market are virtually impossible to get accepted on any listing that has just recently hit the market," Brown said.
Extras to give you an edge
Bentley suggested having a lender who's willing to call the listing agent to vouch for your ability to get a loan.
If the seller wants to stay in the home for, say, 45 days after the sale closes, agree to it, Bentley said: "They’ll often make concessions in other areas to make the deal work."
What about an inspection?
Some buyers are waiving a home inspection to try to strengthen their position, but Davis advises against it.
"It may sound like a competitive tactic to win offers ... but the inspection round is there as a protection measure for the homebuyer, and it is there to detect defects that a seller may not even be aware of in a home," Davis said.
"Protect yourself by asking for and having an inspection performed," she added. "That doesn't mean you have to ask for repairs. You can buy a house as-is, but I don't advise waiving the inspection."
... And breathe
Agents advise buyers to not get discouraged, even if their first, second or third offers aren't accepted.
"There will eventually be a home for you," Davis said. Also, she said, realize that "many homebuyers are going through the same thing."
Bentley summed up her advice to buyers in one word: "Breathe."