Updated: Jun 23, 2018
Here are few tips and tricks to winning the House of Your Dreams
The real estate market throughout the country is HOT!
You have probably heard of term, “Seller’s Market”, but what the heck does that mean?? A “Seller’s Market”, just simply means that Home inventory levels are extremely low allowing for newly listed homes to be sold within a few days or even hours of being listed! These newly listed homes are often receiving multiple purchase offers, which is excellent news for sellers but difficult for the buyer.
In this market is important for a buyer that is getting involved in a multiple offer situation, that they have a great real estate agent representing them that has experience with multiple offer situations and can think outside of the box to make their offer standout.
Losing out on a house can be heartbreaking and frustrating for a buyer. Here are few tips to help you navigate through this market:
Get Pre-Approved, Not Pre-Qualified Let’s discuss the difference between pre-approval and pre-qualification.
A pre-qualification is when you provide a lender information to help them develop an overall financial picture. This financial picture is ONLY based on what you provide to the lender. In some cases, the lender may also review your credit report and score to ensure your credit is in line with current mortgage guidelines. Upon review, the lender will provide you with a “Pre-Qualification” letter. This letter is contingent on verification of the information you provided. In many cases the letter may have been issued verification which can cause you some issues down the road. Without proper verification you could get declined once all of the proper information is provided and verified.
Now, a pre-approval is way more involved but is more desirable in this market. Many sellers prefer to see that you have been pre-approved and are more capable of closing on the purchase of their home. In order to get pre-approved, you will have to provide the lender all of your financial information including; credit report, W-2’s, paystubs, etc.
In a multiple offer situation, being pre-approved is extremely important and can make the necessary impact on which offer a seller may consider.
Have Fewer or No Contingencies When there are multiple offers on the table, waiving or not having many contingencies can go a long way! Some traditional contingencies include; home inspection, appraisal, or closing days. Although, it is not often recommended waiving a home inspection, it is still very appealing to sellers.
The purpose of a home inspection is to ensure that your future home is safe. If you choose to waive the inspection, you are deciding to take on any repairs or safety issues that may exist in the home. This leaves the seller free of demands for repairs. In most cases, a seller may have lived in the home several years and is completely clues of any safety concerns.
Earnest Money can Go A Long Way Sellers want to know you are eager and willing to purchase their home. Earnest Money is a good faith deposit on the purchase of a home. The amount to deposit is solely up to you. In a multiple offer situation, the larger the deposit indicates to the seller you are serious!
No Such thing as “Below Ask” In a multiple offer situation, don’t even consider low balling! I know, I know, not everyone home is worth its listing price. But, if you want to be taken seriously, you have to put your best foot forward. If you are seriously in love with a home, let the seller know so you with a strong offer that exhibits your level of interest. In this market, homes are selling anywhere from 5% - 10% over asking price. So, be prepared and make sure you have an agent who ensure your offer price is competitive.
I have several more tips and tricks to winning offers and would love to sit down and chat with you on how to make some killer offers!!