<br>

The term 'panic buying' has been thrown around quite a bit during the COVID-19 housing boom. Housing inventory is at record lows, and housing demand is at record highs. Economics 101 tells us that this is the recipe for a pricing shock -- according to data compiled by S&P CoreLogic Case-Shiller US National Home Price Index, home prices in the United States have increased 12% from March 2020 through February 2021. This unprecedented spike in home prices is driven by record low interest rates and a rapid shift to a work-from-home economy that demands more rooms, more space.

<br>

We have all heard stories of listings on the [MLS](https://www.offermarket.us/real-estate-glossary/multiple-listing-service) receiving dozens of offers, above asking price, sight unseen with no contingencies and going into contract in just a few days. We have also heard countless frustrated homebuyers lamenting about the fact that if they want to buy a house, they are going to be forced into a bidding war for a house that they would not have even considered purchasing pre-pandemic. 

<br>

In other words: buyers are over-paying for undesirable inventory.

<br>

This is panic buying. Panic buying is irrational and dangerously value destructive. This simple guide is your resource to help you avoid panic buying.

<br>

In our Medium post, [Wholesale Real Estate: The World Of Real Estate You Probably Know Nothing About (But You Should)](https://dwshorowitz-offermarket.medium.com/wholesale-real-estate-the-world-of-real-estate-you-probably-know-nothing-about-but-you-should-b544c6ad69b5), we introduce an important source of housing inventory that most "retail" home buyers don't know about.

<br>

[Wholesale real estate](https://www.offermarket.us/real-estate-glossary/wholesale-properties) is a house where the owner (seller) is under contract with a wholesaler (initial buyer) who is selling the contract to another buyer (end buyer). Most of the time, end buyers of wholesale real estate are professional real estate investors (i.e. fix and flip and rental property investors). 

<br>

Additional reading: [Wholesale Real Estate 101](https://www.offermarket.us/guides/wholesale-real-estate-101)

<br>

## Where to find off-market housing inventory

<br>

### 1. OfferMarket

<br>

OfferMarket is a marketplace for wholesale real estate. There are hundreds of off-market deals that you can browse on our platform and buy with ease, without an agent.

<br>

**Join the pros and subscribe to OfferMarket deal flow:**

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<br>
<br>

## 2. Facebook Investor Groups

<br>

There are countless Facebook Groups dedicated to wholesale and off-market real estate, many of which are local. Join these groups for a steady flow of off-market deals. While you're at it, join our Facebook Group: [Real Estate Marketplace: Wholesale, For Sale By Owner](https://www.facebook.com/groups/326051528838367).

<br>

## 3. Network with local wholesalers

<br>

There are probably several reputable wholesalers operating in your local market. You can find them through local Facebook Groups, Google search, and your local [REIA](https://www.offermarket.us/real-estate-glossary/reia). Get on their [Buyer's List](https://www.offermarket.us/real-estate-glossary/buyers-list).

<br>

## 4. Be A Contrarian, Buy Like A Value Investor

<br>

Warren Buffett famously said "be fearful when others are greedy, and greedy when others are fearful". While housing prices have increased tremendously over the course of the pandemic, real estate is hyper local and certain markets have not experienced anywhere near as steep a rise in home prices. This is especially true of urban markets. While everyone is chasing suburban listings, smarter buyers are looking for opportunities in the areas buyers are fleeing.

<br> 

## Summary

<br>

Fight the FOMO (fear of missing out) and use the suggestions in this guide to buy smarter.

<br>

There's more to learn at OfferMarket. Feel free to [reach out](https://www.offermarket.us/contact) if you have any questions!

<br>

The current housing market is arguably out of control. A major supply and demand imbalance has catapulted prices to record levels. If you want to buy a house in this market, these are the things you should know. 

How to avoid panic buying in the current housing market - OfferMarket

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How To Avoid Panic Buying In The Current Housing Market - OfferMarket

How To Avoid Panic Buying In The Current Housing Market

<br>

### What is a short sale?
A short sale is the sale of real property in which with proceeds will not cover the outstanding mortgage principal (loan amount).

A short sale is a sale of real property in which with proceeds will not cover the outstanding mortgage principal (loan amount).

Short Sale - Real Estate Glossary - OfferMarket

What is Short Sale in real estate?

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<br>

## In a rush? [Get your free home sale docs!](https://forms.gle/ZXNDfumpzNmkupnL7)

<br>

## Purchase And Sale Agreement

<br>

Regardless of whether you sell your house with or without an agent (For Sale By Owner), the most important document you need is a Purchase And Sale Agreement. Commonly referred to as the "PSA" and "Contract Of Sale", this form is the legally binding agreement signed by both the Seller and the Buyer, that details the terms upon which real property (i.e. your house and the land it sits on) will be conveyed from you to the Buyer.

<br>

In most cases, the Buyer will submit their offer to you formally as a Purchase and Sale Agreement, and it will contain the following terms:

<br>

- **Purchase Price:** the amount the Buyer will pay to the Seller
- **Earnest Money Deposit:** the amount of money the Buyer will place in an escrow account as a good faith gesture once the Seller accepts the agreement. If the Buyer fails to perform their responsibilities in the agreement, the Seller will receive the Earnest Money ("EMD") as damages. This amount is typically 1% - 2.5% of the purchase price of the home but can be higher in a hot housing market.
- **Acceptable financing:** the types of financing the Buyer can use (i.e. cash, conventional financing, FHA financing, VA financing, seller financing)
- **Close by date:** the date by or before which settlement will occur
- **Inspection window/Study period:** for how long will the Buyer have the right to inspect the property?
- **Contingencies:** what would allow the Buyer or Seller to cancel the agreement and have their Earnest Money Deposit refunded? Common contingencies include inspection results, financing falling through, and buyer's home sale falling through.
- **Closing costs:** how will items such as documentary stamps, recordation taxes, State and local transfer taxes be allocated to the Buyer and Seller?

<br>

### [Read: Pro Tips To Get Your Offer Accepted](https://dwshorowitz-offermarket.medium.com/pro-tips-to-get-your-offer-accepted-f050ab6358a0)

<br>

In traditional real estate transactions, this document is signed by the Buyer and then provided to the Seller or Seller's Agent by the Buyer or Buyer's Agent as their formal offer. If the Seller accepts the terms in the agreement, they sign. Once the agreement is signed by the seller ("acceptance"), the contract is considered executed and the responsibilities detailed in the agreement for each Party must be met.

<br>

### Property Disclosure or Disclaimer Statements

Certain states require the Seller to provide property disclosure or disclaimer statements to the buyer before the buyer formally submits their offer. This requirement is commonly waived if the buyer does not intend to live in the property.

<br>

## Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards

To cover your bases, you should complete the EPA's Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards form.

<br>

## Want home sale documents sent directly to your inbox?

<br>

Fill out the form below and we'll send you our standard home sale documents specific to your state.

<br>

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<br>

## Selling your house For Sale By Owner is easy with OfferMarket

<br>

When you sell your house For Sale By Owner with OfferMarket, we manage everything for you. That includes buyer verification, tour requests, documents and closing coordination.    

What documents do I need to sell my house without an agent? We'll answer this question and provide you with templates.

What documents do I need to sell my house without an agent?

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What documents do I need to sell my house without an agent?