This is an extremely busy and frustrating market. If you are a listing agent you are probably a bit overwhelmed with multiple offers and demanding sellers. It is no easy task trying to navigate the transaction to get to the closing table and end up happy.
If you are anyone else, you are running as fast as you can to do business. On any given weekend we here at Wintrust Mortgage can have dozens of borrowers making offers on their dream home. As a matter of fact, pretty much all other lenders in MA are fielding dozens of borrowers making offers on their dream home. With all of this activity, it is more than likely that those dozens of borrowers are all offering on the same homes! At least it sure feels that way.
As long as we are in a multiple offer market there will be one winner and many disappointed losers for every listing…. So how do we make offers that stick?
What matters other than price?
Timing – look at date flexibility, find out what the sellers need and deliver those dates.
Down Payment Size – The greater the down payment, the more attractive the offer!
Cash – Cash is King! Pay cash if you can, you can finance the property at a later date.
Speed – Talk with your lender about getting a “credit only” qualification quickly to satisfy the sellers, this means that the loan, if fully approved, is subject to approval of the property.
What about contingencies?
Financing – Call your loan originator to determine if it is reasonable for your buyer to remove the financing contingency and what the risks are. This is not the same as paying cash – what it means is that buyer’s cannot get the deposit back if denied the loan. If properly pre-qualified, the only concern when removing a financing contingency is that the appraisal comes in at the purchase price, or that the buyer is willing to make up the difference between the agreed upon price and the appraised value. However buyers with complicated self-employment income or other unusual financial circumstances need to be cautious when considering waiving their mortgage contingency.
Inspections – Some people remove the inspection contingency and some people have the inspection at or even before they make an offer. We have seen other offers accepted with the condition that they would have the inspection right away, but that the results of that inspection could not be used to cancel the contract on the house or to renegotiate the agreed upon price.
Until we get more listing inventory we are going to have lots of frustrated buyers. Many potential sellers tell us that their greatest concern about listing their home in today’s market is fear that they will not be able to find another property in the time frame allowed with the sale of their home.
Team up with Wintrust Mortgage to present programs where we can engage sellers in pre-qualification activity and home selling strategies such as utilizing extended locks and lease back agreements to allow enough time to find a new home once their property is under agreement.
Working together, we can bring more ready inventory to the market.