Market forces have shifted and today it’s a seller’s market in many communities. Here are some tips for frustrated buyers and buyer’s agents to help get offers accepted!
Make a Large Down Payment– the larger your down payment the more attractive your offer. Why? Because if the appraisal comes in low the buyer with the largest down payment may not have their financing impacted by a low appraisal and can move forward on the purchase without further negotiation.
Pay Cash– If you can, make a cash offer. If the purchase timeframe allows you can still get a mortgage or you can mortgage the property after the purchase transaction is concluded.
Date Flexibility– if you can determine exactly what the sellers’ need in terms of closing dates and then meet those dates – your offer could win even if the price you are offering is lower than others. You can go for an extended closing or even offer to rent the property back to the seller for up to 60 days. Meeting challenging timing needs for the seller can make you the perfect buyer!
Removal of Contingencies/ Financing– We are never comfortable recommending that a buyer remove their mortgage contingency unless they can truly pay cash for the property- BUT we certainly know a winner when we see one and often have buyers who remove their mortgage contingencies with a very THOROUGH pre-approval process.
For added protection– IF you choose to remove a mortgage contingency or make a cash offer or one with a large down payment, the buyer can put an appraisal contingency into their offer so that they have options if the property appraisal comes in low.
Removal of Contingencies/Home Inspection- If you are knowledgeable about home construction or have a friend or family member who is an expert, you might want to consider removing your inspection contingency. Of course you will have no recourse if a structural problem arises that you were not aware of… Removing contingencies also removes protection for the buyer so keep that in mind.
The Personal Approach – Introduce yourself!
Selling a home is a very emotional experience for many people and often they want to know that their home is going to a ‘good’ family or person, especially if this was the sellers first home or they raised their family there. A letter from a perspective buyer introducing themselves and explaining why buying this property means so much could make a difference in the offer process and negotiation.
Don’t Give Up
It can be really disappointing and frustrating for buyers today. Don’t give up! As the market improves more sellers will be ready to put their property on the market increasing inventory and perhaps eliminating the multiple offer effect that we are seeing in some areas today.
It is anticipated that rates will remain low for the foreseeable future. However, even if not at their record lows it is important to keep rate movement in perspective. Rates can go up much more before they start to come up off the historic lows that we are seeing today.
Homeowners – ready to move up, down or out? This is a great time to sell so what’s keeping your from taking advantage of this fantastic market?
Let’s talk about it on Tuesday May 6th-Join the Fairway team of mortgage experts to help you determine your next real estate steps. Should you stay, should you sell, should you rent, should you buy and what CAN you do based on your financial profile. With information comes clarity so don’t be afraid to learn about your options in a low stress, low pressure, and friendly environment.
Tuesday May 6th-6-7:30 pm
60 Wells Ave. Suite 101
RSVP to email@example.com
Light refreshments and free credit reports included!
Come to our First Time Seller’s program and we will learn about this crazy market together!