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The real estate market is booming. It is a seller's market. Most homes that enter the market have multiple offers within days. As a buyer, it can be tricky. You may look at home, and before you even decide whether you are interested or not, it is no longer available.
The simple truth is that, once you find a home that you love, you are going to be competing for the sale. You have to make your offer stand out above the rest. Here are some tips to do so.
Have a down payment ready to go. Before you even start looking at homes in this market, you need to be ready to settle. Make sure that you have a good down payment and are ready to put an offer down that day. If not, you might as well take the time that you need, and then start looking.
You also need to get pre-approved. This means that you have met up with a mortgage company, and they will give you a loan for a certain amount. You can look at homes knowing that you can quickly get the loan that you need to pay for it. Also, by getting pre-approved, you have already started on the paperwork, so you are that much closer to closing on the home of your dreams!
Once a home that you like is on the market, schedule an appointment to see it. Most homes have multiple appointments and offers in the first few days. If you wait a day or two, you may miss your chance!
Don't wait to submit an offer. Once you are sure that you are interested in a home, you need to talk to your real estate professional to get your offer in. If you wait even a few hours, you may miss your chance of putting an offer on the house.
Real estate professionals have been working in this market for some time, so it is a good idea to talk to an agent to make sure that your offer stands out above the rest. Make sure that you talk to him or her about how you feel (right away). That way, you can work together to get your offer on the table and in front of the sellers! They may recommend waiving some things, such as inspections, in order to get your offer to stand out. You may not be able to wait until your home sells to put the offer in. Your real estate professional may also tell you that you can't ask for any seller's help when it comes to closing costs.
You may want to put an escalation clause, which allows you to go over the highest bidder, up to a certain amount. You will have to pay full price, if not a little more if there are multiple offers. An escalation clause speeds up the process. Instead of going back and forth between the sellers until you find a price that you both like, you can let the sellers know that you would be willing to pay a certain amount over the highest price, up to an agreed amount. You may offer one thousand dollars over the highest bid, up until you are paying ten thousand more than they are asking.
However, the best way to make your offer stand out is to be preapproved. The sellers will be glad to know that you are already on your way to getting a mortgage, so that they don't have to worry about you backing out because you can't afford the home. They may even be able to close sooner, since you already have the paperwork started and ready to go! When you start this process, you also need to know that you have enough down payment available to get you to settlement.
If you are serious about buying a home, don't hesitate to contact us today at First Savings Mortgage. We will get you preapproved and ready to start looking for your home.