Dave Ramsey Says Home Buyer Demand Will Stay Strong This Year. Here's How to Edge Out the Competition

You can do your part to beat out other buyers.

There was a point not so long ago when buyers were so desperate to purchase homes they would make offers without actually seeing those properties in person. The good news is those days may finally be coming to an end. Housing inventory has been picking up steadily over the past number of months, and between that and rising mortgage rates, the once-red hot housing market is finally starting to cool off a bit.

Still, the real estate market continues to lack inventory in a notable way. And that means buyer demand is still strong, and is likely to stay that way for the remainder of the year.

In fact, financial expert Dave Ramsey thinks there's a good chance homes will continue getting scooped up quickly during the second half of 2022. And that means you might face your share of competition as a buyer. But worry not -- there are steps you can take to give yourself an edge if you end up landing in a bidding war.

1. Get pre-approved for a mortgage

A mortgage pre-approval letter won't guarantee you a home loan. But what it will do is make it clear to a seller that you're a serious buyer who's financially capable of purchasing a home. If you're up against buyers who don't come in with mortgage pre-approval, you could wind up with a definite advantage.

2. Pay cash if that's easy for you to do

Let's be clear -- most people cannot afford to plunk down several hundred thousand dollars on a home in one fell swoop. And even if you can afford to, there are risks involved -- namely, tying up so much cash in an asset that may not be so easy to sell should your circumstances change and a need for money arise.

But maybe you recently received a $300,000 inheritance from a loved one who passed away, and it's money you totally weren't expecting. That could make paying cash for a home more feasible. And if you're willing to part with that money in one lump sum, a seller may be more inclined to work with you compared to a buyer who needs a mortgage. That's because mortgages can fall through. And even when they don't, they can take a long time to close on.

3. Be flexible with your closing date

Maybe your seller wants a fast closing. Or maybe they want to delay that closing for several months -- say, to let their children finish up the academic year. The more flexible you're willing to be, the more likely a seller is to want to work with you.

Thankfully, we're a bit past the days of buyers resorting to drastic measures to purchase homes, such as making offers sight unseen or waiving home inspections. But that doesn't mean the competition isn't still fierce. If you make these moves, you can give yourself a leg up over other buyers -- and increase your chances of getting to snag a place to call your own.