Want to make sure when you find your dream home that you get it? Check out these must-know tips before you enter the market!
One look at the real estate industry will tell you that it is a seller’s market. With a shortage of inventory, one home will likely have multiple buyers vying for it. Before you enter the real estate market as a home buyer, take a look at these must-know tips for beating out the competition to get your dream home!
Get Pre-Approved Before You Begin
If you’re not pre-approved, you cannot make an offer on a home. Once you find a home you absolutely love, you need to place an offer immediately, or it could get snatched out from underneath you. You can’t do this if you are not pre-approved. Furthermore, many Realtors will not even show potential buyers a home with a pre-approval first. They don’t want to waste their time, or their client’s in the event that the buyer can’t get approved at all.
Carefully Choose Your Lender
You may think that national lenders such as Quicken Loans are a safe, easy bet. However, using a lender that Realtors are not familiar with or that does not have a solid reputation will make sellers and their agents nervous. In multiple bid situations, this can easily be a deal-breaker and cause another buyer to win out. Instead, ask around and choose a local lender that is popular with Realtors and has a good reputation for closing deals on time.
Make a Strong Offer
Now is not the time to play it slick and try to lowball a seller. If you really want the home, you need to put in a very strong offer. Most homes in good shape will have multiple offers within the first few days of going on the market. Sellers are looking at how much they will pocket when it is all said and done, so you need to make sure that if you want the seller to pay closing costs or other expenses, you include these in your offer. For example, if the listing price of a home is $400,000 and you want the seller to pay $5,000 in closing costs, it is advisable to offer at least $405,000 to remain competitive.
An offer littered with contingencies will quickly be pushed aside in favor of offers without contingencies. It is best to stay away from contingencies, such as selling a home first (if at all possible) or property alterations. A firm, clean offer will give you a leg up on your competition.
Offer Your Best Down Payment & Earnest Money
There are loan programs out there that require as little as 0%, 3.5%, or 5% down. However, if possible, put down a much larger down payment, at least 20%. Click here to learn more about different loan programs. The same goes for earnest money. It is standard to put down at least 1% of the offer price but throwing in a little more will make for a stronger offer. Investing more than the minimum amount required will show the seller and their agent that you have the funds needed to back your offer!
Choose a Realtor Who Truly Understands the Market
This fast-paced, intense market is not for hobby Realtors. You need a Realtor who can be available to show you homes as soon as listings come available and to stay on top of offers. The right Realtor will help you find the right house, advise you throughout the process, and make sure that you end up with an incredible investment.
Gitta Sells is the premier Realtor in Lake Mary. With over 32 years of experience in the Real Estate industry, it is more than just our job. It is our passion. Our team works around the clock to help you find and get your dream home. Feel free to reach out with any questions you may have at 407-330-2181 and firstname.lastname@example.org!