How to Level the Playing Field in a Competitive Housing Market


A recent Wall Street Journal article pointed out that real estate investors may be pushing young, first-time homebuyers out of the housing market. Low and mid-priced homes, which appeal to both first-time buyers and investors, are in tight supply. Investors are swooping in with all-cash offers only to turn around and rent out the properties. As rental rates skyrocket across the nation, investors stand to benefit while potential homebuyers are challenged by high rent that may prolong saving for a down payment. Is there a solution? Can buyers finance a home purchase and still put forth a strong enough offer to compete against all-cash? We asked Realtor® Dana Green to weigh in on how buyers can level the playing field.

couple high fiveRPM: What does it take for a buyer to succeed in a competitive market?
Dana Green: In today’s market, a confident buyer is what is most needed to create a competitive buyer. We need a buyer who has done their homework, knows their qualifications, and is prepared.

RPM: What should a buyer do in order to prepare to enter the housing market?
Dana Green: I recommend that buyers go as far as they can through the lending process with a trusted advisor so that they can write an offer as strong and clean as their unique qualifications allow.

RPM: How can buyers prove they are serious and that their offer is solid?
Dana Green: All sellers want to select an offer that is going to close. Programs like RPM’s Home On Time™ and Advance Approval* enhance the buyer’s strength in the offer process and show their commitment to a professional escrow.

RPM: Are there any other tips for making an offer with confidence?
Dana Green: Buyers should always do their best from the start and should never rely on counter offers. In an ideal world, this means no loan contingency and no appraisal contingency. But we are not comfortable waiving contingencies unless their trusted advisor has fully vetted their finances, discussed the ramifications of waiving contingencies, and given them the green light.

If you are preparing to enter the housing market, and want to move forward with more confidence, contact a trusted advisor who will help you evaluate your financing options.

By Amy Malloy

Contributor Dana Green is an award-winning Realtor® who lives and works in Lafayette, California. Dana has consistently been recognized as the #1 Realtor in Lafayette 2008-2015 and has been ranked by the Wall Street Journal as one of the top 100 Agents in the Nation.

* Under RPM’s Home On Time Guarantee Program, RPM will waive its Lender Fee if a purchase transaction does not close on or before the anticipated date of close of escrow, as agreed to by RPM. The Home On Time Guarantee is subject to the following terms and conditions: The loan must be a purchase transaction. The complete loan package must be received by RPM’s Mortgage Banking Operations Center at least 25 days prior to the close of escrow. The Home On Time Guarantee timeline begins when the complete loan package is received by the Operations Center. The Home On Time Guarantee does not apply if the failure to close within the anticipated close of escrow date is due to events or circumstances beyond RPM’s control. These include, but are not limited to, delays caused by an appraisal value on the subject property that is not acceptable to RPM, acts or omissions by the escrow or title company, second lien holder approvals, short sale approval, condo project eligibility or loan conditions imposed by RPM or the investor that, despite reasonable diligence by RPM, are not met by any party in a timely manner. The Home On Time Guarantee does not apply to brokered loans. All programs are subject to borrower and property qualifications. Rates, terms, and conditions are subject to change without notice.

RPM Mortgage, Inc. | 3236 Stone Valley Road West, Alamo, CA 94507 | Ph: 925.295.9300 | NMLS #9472 | AZ – Mortgage Banker License #BK-0924551. CA – Licensed by the Department of Business Oversight under the Residential Mortgage Lending Act. CO – Mortgage Company Registration, Regulated by the Division of Real Estate. ND – Money Broker License #MB102711. NV – Mortgage Broker License #1232. OR – Mortgage Lending License #ML-4876. WA – Consumer Loan Company License #CL-9472. | Equal Housing Opportunity.  Equal Housing  2823