Buying A Home In A Decidedly Sellers Market
Vikki Grodner, REALTOR®
Buying a home is a dream for many. But in today's seller-driven market, that dream can sometimes turn into a nightmare.
From multiple offers to a "new normal" (seller's not being willing to pay closing costs, for example, or asking to have inspection or appraisal contingencies waived), the current real estate environment can make buying a home tough. But for those with perseverance and a willingness to think creatively, it is still possible to score your dream home.
1. Look at the road (or in this case, the house) less travelled. If a house has been on the market for more than a few days in this hot market, then it might be one to consider if it meets your basic criteria regarding square footage, number of bedrooms/bathrooms, area of town or neighborhood, etc. This usually means that the property may need a little updating (EVERYBODY seems to want white walls these days) or may have something a little quirky about its layout. But if you are willing to put in a little effort, or to put on your creativity thinking cap regarding how the house might work for you, you may create instant equity with some simple changes.
Do keep in mind that there are some things that cannot be overcome and may be the reason a house sits on the market -- if it is on a busy road, in a flood plain or next to an industrial park, those are likely issues regarding the property that cannot be overcome.
2. Consider houses that do NOT meet your immediate criteria. This may seem to somewhat contradict #1. But if, for instance, a three bedroom, two bath (the most popular request for most people looking to buy a single family home) is a must have for you, then a four bedroom, one bath may have the room or layout to convert one of those bedrooms into a bathroom. And by the way, a lot of people will not even look at a house with only one bath, making for a smaller pool of competitors for such a house.
3. Ask your Hospitality Network Group Realtor if they know of houses that are not on the market. The real estate industry is all about cooperating with other agents. Nevertheless, we may be aware of a house that is coming to market, or has recently gone off the market. Both of these scenarios can potentially uncover inventory that is not currently visible to everyone else. Similarly, we have techniques we can employ to try to bring a house to market that meets your needs if you are focused on a particular neighborhood. Ask your favorite HNG Realtor how we can do this.
4. Lastly, consider not just price but the terms of an offer. If you do find yourself in a bidding war for a property, there are numerous elements to a deal that can give you a greater chance of succeeding in having your offer ultimately be the one that is selected.
- Use of an escalation clause. Not all listing agents will accept an escalation clause, but if they will, this can allow you to pay over the asking price if needed without paying more than is necessary for a property. On a property listed for $250,000, an escalation clause may read something like this: "buyer will pay $100 over the next highest offer up to $265,100" If there are other offers and the highest one other than yours is $260,000, then the escalation clause would result in our client (YOU!) being able to purchase the home for $260,100. Of course, there could be someone who offers $270,000, and then their offer may be the one ultimately selected. However, price is only one term criteria.
- Purchasing a home as is. Letting a buyer know you are not going to ask for them to complete a long list of minor home repairs can be an attractive carrot to dangle. Buyers can still do a home inspection and if there is something major, would still have the opportunity to walk away from the purchase based on the unsatisfactory results of a home inspection. Some buyers go so far as to waive a home inspection but this is not something that we recommend.
- Waving the appraisal contingency. Financed purchases will require an appraisal. Cash deals do not. You can waive the appraisal contingencies in both cases but need to be aware that if you are financing and waive the appraisal contingency, and then the home does not appraise for the purchase price, you will need to come up with the difference between the appraised price and the agreed upon purchase price.
- Both waiving of home inspection and appraisal contingencies can be ways to make an offer stronger but also can potentially create a dangerous situation for the buyer. Proceed with caution when considering waiving inspection and appraisal contingencies.
- Offer to pay the seller's closing costs in addition to your own
- Write a "love letter" to introduce yourself to the seller. Sometimes this can help sellers to become more invested in a particular buyer. Your Realtor can also speak with the listing agent and try to find out what is important to the seller, and then this can be reflected in the letter as well. So, for example, if you find out the seller needs a quick close this can be something that you as the buyer might be able to accommodate, if you are making a cash offer or work with your lender to try to close in under 30 days. Or when you tour the home, you might take note of shared interests you have and can speak to in your letter.
While all of these techniques are not sure fire, when used successfully by a buyer with an open mind, they may result in you finding and getting the house of your dreams sooner rather than later.
At Hospitality Network Group at Keller Williams, we believe our mission goes beyond real estate—it’s about investing in people, purpose, and progress. Whether through homeownership or community service, we are committed to helping neighborhoods grow in meaningful and lasting ways. Recently, Recently, we took great pride to be part of an initiative that reflects those very values: the creation of Alabama’s first public Holocaust Memorial, now open to all at Birmingham’s historic Elmwood Cemetery. This powerful new monument was spearheaded by Barbara Bonfield, a visionary leader whose dedication and persistence brought the project to life (Barbara’s moving interview can be seen in the dedication video) . Funded by members of Birmingham’s Temple Beth El, including Vikki and Ken Grodner and others in the greater Birmingham community , the memorial stands as a tribute not only to the memory of those who perished in the Holocaust, but also to the survivors who found the strength to rebuild their lives and legacies in new places—including right here in Alabama. When Terry Holzman, a friend and client, approached Ken and Vikki to support this effort, they immediately felt called to contribute. Ken joined the initiative with gratitude and purpose—helping lead outreach efforts and encourage others to support this historic moment. The result is an 8-foot-tall, 700-pound steel sculpture in the form of a dead tree, resting on rusted railroad tracks. The tracks—originally used during the era of slavery in Alabama—evoke a chilling duality: a local legacy of oppression and the haunting memory of the trains that carried millions to Nazi extermination camps. In its starkness, the sculpture demands reflection. Yet, in its permanence, it offers a call to remember, learn, and ensure “never again” truly means never again. The memorial is not just a place of mourning—it is also a place of resilience and renewal. It honors those who survived the Holocaust, rebuilt their lives, started families, and continued their traditions in the face of unimaginable loss. For Ken, Vikki, and all of us at Hospitality Network Group, this project exemplifies our mission to uplift and support causes that enrich the communities we serve. We’re proud to stand behind efforts like this that preserve history, promote understanding, and inspire future generations to act with compassion and courage. We invite you to visit the memorial at Elmwood Cemetery and to learn more by reading the Alabama News Center’s coverage. Thank you to Barbara Bonfield, Terry Holzman, and all those who contributed to making this vision a reality. Together, we’re not only remembering the past—we’re building a stronger future that safeguards pride, protects honor, and upholds the integrity of all people. Hospitality Network Group at Keller Williams – Client focused . Performance driven The Hospitality Network Group at Keller Williams is honored to be part of a company that fosters a culture of excellence, empowering its agents to deliver unmatched service and expertise. This commitment to excellence is why Keller Williams agents consistently achieve results that set the standard in the industry. Whether you're buying, selling, or investing, our team is here to ensure your goals are not only met but exceeded. Trust the Hospitality Network Group at Keller Williams to guide you through every step of your real estate journey. Contact us today to learn how we can help you achieve your real estate dreams.
As real estate continues to be one of the most effective tools for building and preserving wealth, many families are strategically using homeownership to transfer financial security to the next generation. By leveraging real estate investments, parents can provide both immediate support and long-term financial stability for their children. With home prices on the rise and tax laws evolving, proactive wealth transfer strategies can maximize benefits while minimizing tax burdens. Rather than waiting to pass on assets through inheritance, many parents are choosing to transfer wealth now by helping their children acquire property and enjoy it additional years of the benefit. Here’s how they’re making it happen. 1. Gifting a Home with a Structured Loan Forgiveness Plan A married couple can loan their single child $500,000 (or any other amount) to purchase a home, following the guidelines established by the IRS. This method allows parents to maintain financial control while gradually transferring wealth. Here’s how it works: The parents forgive an amount equal to the maximum annual gift tax exemption per parent ($19,000 in 2025) on the loan, totaling $38,000 per year. This process can be repeated annually until the full loan amount is forgiven. If the child is married, their spouse can also receive the same gift amount, effectively doubling the annual forgiveness to $76,000 per year. Over time, this strategy allows parents to gift a home while minimizing tax implications. 2. Buying a Home in Cash and Gifting It For parents who have the financial means, purchasing a home outright and gifting it to their child can be a tax-efficient way to transfer wealth. Here’s how it works: A married couple buys their child a $500,000 home in cash and gifts it to them. They file the required gift tax return, which falls under the lifetime gift and estate tax exclusion of $27.98 million per married couple (for 2025). This strategy allows for the immediate transfer of homeownership without requiring the child to take on a mortgage. Important Note: The lifetime gift and estate tax exclusion is set to drop significantly in 2026, from $13.99 million per individual ($27.98M per couple) to approximately $5 million per individual. This means high-net-worth families should consider making large gifts before the exemption decreases. Why Real Estate Is a Smart Wealth Transfer Strategy 1. Tax Advantages By structuring gifts properly, families can leverage the annual gift tax exclusion and lifetime gift tax exemption to pass on real estate with minimal tax consequences. Additionally, if the child holds onto the property, they may benefit from step-up in basis rules if the home is inherited later. 2. Long-Term Wealth Growth Real estate historically appreciates in value (on average 5% per year over the last 30 years), making it an excellent asset for wealth accumulation. By helping children buy a home now, families position them for financial growth through home equity. 3. Immediate Use & Stability Unlike other investments, real estate provides immediate utility—offering a stable place to live while also serving as a valuable financial asset. Start Building Generational Wealth with Real Estate Today As wealth transfer strategies evolve, real estate continues to be a cornerstone of financial planning for families. Whether through structured loans, gift exemptions, or outright purchases, helping your adult children acquire property now can be a powerful way to secure their financial future. If you're considering using real estate as a generational wealth transfer tool, contact The Hospitality Network Group at Keller Williams today. Our team specializes in guiding families through smart real estate investments that maximize long-term wealth potential. Hospitality Network Group at Keller Williams – Client focused . Performance driven The Hospitality Network Group at Keller Williams is honored to be part of a company that fosters a culture of excellence, empowering its agents to deliver unmatched service and expertise. This commitment to excellence is why Keller Williams agents consistently achieve results that set the standard in the industry. Whether you're buying, selling, or investing, our team is here to ensure your goals are not only met but exceeded. Trust the Hospitality Network Group at Keller Williams to guide you through every step of your real estate journey. Contact us today to learn how we can help you achieve your real estate dreams. Disclaimer: The information provided in this blog does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials available in this blog is for general informational purposes only. You should consult your own legal, financial, or tax advisor and verify all information to your satisfaction prior to taking any action.
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