Top 4 things buyers can do to get an edge in a sellers market
Pre-approval isn’t going to cut it
Go through full mortgage underwriting before shopping. Being pre-approved is no longer enough in this aggressive market. Sellers looking at multiple offers will pick the surest thing. Go well beyond a pre-approval letter. “If you need a mortgage, make sure you’ve gone through full underwriting,” he says. “Then, all that’s left is for the appraisal to come in.”
Consider the “Timing”
The seller has a specific deadline in mind for the sale of their home. The longer the home stays on the market, the more money flies out of their pocket. Be strategic by focusing on a closing date that benefits the seller the best. You might have a slightly higher offer than the competition, but your closing date will seal the deal faster than the rest.
If time is not of the essence (I can’t imagine why), you just might need to be a bit more competitive with your bid.
Your money down deposit speaks volumes. Focus on a 5% to 10% ratio of the actual price.
This is often something that gets lost in the shuffle of real estate deal transactions, in that you’re not simply offering to buy a place, but you’re selling your offer likewise, and to sell it, you’ve got to win that buyer’s attention. Having a large money down deposit will show them you are serious.
Make a strong offer.
In this market, many times the asking price is often the floor. Desirable homes frequently sell for above asking price. Figure out if the home you’re interested in is likely to have multiple offers, and if so be prepared to offer above asking price.
“You have to put your best foot forward immediately. If you have the ability to offer cash, do it.” A cash offer usually means fewer contingencies around appraisals, inspections and continued employment, so sellers look at those bids favorably.
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