In a seller’s market, each home for sale may receive multiple offers due to low home inventory levels. So you’ll need to come to the table with a firm offer, or you’ll likely be kicked to the curb fairly quickly.
I have done these things before, but every deal is different, and every property and buyer is unique. So remember that these are ideas/suggestions and depend on each situation.
1) Get a Precommitment there is a difference:
Precommitment Vs. Pre-approval:
Getting pre-approved is quite possibly the most critical step you can take at the beginning of the home buying process. It would help if you did this before you ever step foot in a Realtor’s office and before you even browse for properties online.
Unlike a pre-qualification, which is traditionally an automated review of your credit report, credit score, and stated application information, a pre-approval scrutinizes every aspect of your creditworthiness.
A pre-approval determines precisely how much you may borrow under a specific mortgage program. It’s also a great way to distinguish your offer in a highly competitive, low inventory market. In other words, once you’ve obtained your pre-approval, you can shop for homes with confidence!
Pre-commitment: It takes about five days for the mortgage contingency; it is usually higher than the sales price. Everything verified; the underwriter cant negates this. Its already approved. But it would help if you still had homeowners insurance, title search, and appraisal.
The Loan officer I use can write an explanation letter. (If needed)
Would it surprise you to find out that shopping locally for a mortgage is one of the best things you can do when it comes to having your bid accepted?
“Many people think that the highest bid is the one the seller automatically chooses— and ultimately there’s a lot more to it than that,”
I advise my clients to look beyond the dollar signs of the offer— not that offer price isn’t necessary, because it is, it’s just not the only thing sellers should consider. Just like conditions are essential to weigh in the decision process, sellers should also think about whether or not the prospective buyer has been vetted and truly pre-approved by a local lender.
Having a local lender who understands the market is critical, “Having market knowledge enables an underwriter to easily tackle each element involved in going from contract to closing.”
2) Larger Down payments say you are there to do business.
It shows more commitment to the purchase. Remember, you can get it all back if you decide to terminate during your contingency period. So many options these days with 3% down Vs. 5% down Vs. 10% or 20% down. Remember, with 20% down; you will no longer need PMI Private Mortgage Insurance.
3) Standard contingencies— things like an inspection or available financing— are to be expected and won’t throw the seller off. You can even offer to eat the first $2000-$5000 (whatever you are comfortable with) of defects found during the home inspection. Try to keep in mind that a home inspection was created for peace of mind not to be a second chance to lower the purchase price.
On the other hand, attaching too many contingencies to your offer— especially in a seller’s market— could seriously impede your ability to get the offer accepted. I can help you to decide which contingencies are best to include in your offer.
4) Pay over asking: We need to make sure the comps support the offer. I know its a simple concept, but you need to prepare yourself to understand what your willing to offer.
Fully understanding the market can help you be highly competitive. Don’t make the rookie mistake of perusing the web to look at popular websites like Zillow or Trulia to try and conduct your own research. These third-party sites often pull inaccurate data from various sources to report property value estimates. Trust me; as your Realtor, we’ve got your back on this one.
I will work to pull data from recent home sales that match or closely resemble the value of the home you want to purchase. We can use this information to make a competitive offer.