A Seller’s Market can be tough for new home buyers, but here are some tips to help your offer stand out.
When I’m helping you find a new home, I can’t help but try to “ENGINEER THE PROCESS” to get the best chance of winning the bid. Recently, I decided to sell my home and downsize a bit to help me manage the property a little better. Two acres of land is a handful! I stopped and thought about what I needed to do to set myself up to have the best chance to win a bid with multiple offers because we are in the middle of a CRAZY SELLER’S MARKET (Note:2021-2022)
I have current listings, so I decided to analyze the things that helped us accept one bid over another bid. I changed my finances around so that I could be a “Cash Buyer” because I didn’t want to sell my current home as a “contingency” for my new home. I found that buyers wanted to increase their chances of winning and I made this list based on advice I gave them.
Cash is King!
There is a lower chance of problems with CASH$$$. No financing to fall through and no need to worry about an appraisal, as long as your AGENT runs the numbers first, to make sure you’re getting a good deal. Sometimes, when you want to win, you will need to go OVER the actual value, knowing that you will stay in the home for a few years to get that money back.
PreAPPROVAL
If Cash isn’t possible, get Pre-Approved instead of just Pre-Qualified. Pre-Approval goes the extra step, to verify income, employment and more. Always ask your lender to make this extra step, and to have your letter say this.
Choose a Conventional Loan (if Possible)
Choose a CONVENTIONAL instead of FHA or VA, if possible. FHA and VA loans allow you to have a lower down payment, but there are also extra things that would need to be done to be approved. In addition to an appraisal, FHA/VA loans may require some repairs. This means that some items may not be optional. They require all Vinyl on the home to be intact, all systems operational, and the like! Sometimes a seller would prefer a Conventional Loan because of this.
More Money Down
Make a Larger Deposit (Earnest Money) or a Larger Down Payment for the Loan. This shows that you’re financially able to close the loan, more than someone with a Zero Down loan. Sellers love a conventional loan at 80%.
Eliminate Contingencies
Some people go as far as to waive the Home Inspection, and this to me, is a little out of bounds. I’d consider waiving the Appraisal Contingency if you are paying Cash, or trying to sell your home first (if the timeline would work). Any contingencies you can remove,…the better you will look.
Appraisal GAP!
This is a HUGE ONE! When you finance a home, the bank will order an appraisal. Let’s say the home is listed for $200,000 and you bid $210,000. Your bid will beat the others if you say that you have the cash (and can prove it), to go to closing, even if the appraisal is at $200k.
Communicate with the Listing Agent
I always talk to the Listing Agent and find out what the SELLER really wants. We may have some flexibility to give them extra time to find their new home, or they may want a fast close. Finding out this information is the key to putting in an offer that makes you stand out.
You’d be surprised how many agents skip this valuable step. This is actually one of the most important things a Realtor can do…. and it makes a difference.
MINE!
Email me at LeslieSellsSavannah@gmail.com if you would like to begin searching for that new home. I continue to find homes for my clients, even in this SELLER’S MARKET.
Follow me on Facebook at https://www.facebook.com/LeslieSellsSavannah
And YES, I got my new house!
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