Although the internet can be a great resource for a variety of information, a lot of that information is incorrect. One of the most important and expensive decisions in your life, home buying, tends
Rules Of Engagement
You've finally decided that you are ready to move and it's time to snag the home of your dreams! In a market like the one we've been experiencing, little miss steps can be costly mistakes.
We are coming out of a time where because of the decline of the market, people were only selling if they needed to, which generally speaking were the 3 D's (debt, death or divorce). This left buyers with very little inventory to choose from. A lot of those buyers put off buying for a while and those who didn't stop their search have been actively working with their realtor and stalking realtor sites like this one just waiting for the perfect house to appear.
If you are just beginning your search, note, this is now your competition and they have been ready to move! Only a few months before the spring season here in the Hudson Valley and we're already experiencing bidding wars and homes with accepted offers and contracts out before the ink has dried on the listing agreement.
This means if you don't want to be left high and dry wondering why you re not moving into your dream home, you have to be ready to act fast!
Here are 5 things you can do to help improve your chances of calling the movers this season:
1. Get Preapproved
I've worked with buyers in the past that didn't want to get a bank preapproval or sell their current home until they've found "the one", but the truth of the matter is an offer submitted without a preapproval is not taken seriously. How does the seller know that you can afford the house without proof? If you must sell first, you probably won't be able to obtain an unconditional preapproval and the seller of your potential new home could be left in limbo until your house sells without knowing just how long that will take.
In both cases, if that seller receives another offer with the proper preapproval and it's at the right price, chances are you and your realtor will be continuing your search. In this market, "the one" goes to "the one" who is really ready to move.
2. Pull the Trigger
So you've found "the one", now act on it! Remember, you are not the only buyer looking for a new home and if it's priced right, it's not going to wait for you. The seller will start negotiating with the first buyer who presents them with a reasonable offer (accompanied with a preapproval, of course).
In NY, putting an offer in doesn't lock you n to the property. You still have to get the offer accepted by the seller. And even then you are not legally obligated to move forward until you've signed contracts and left a down payment in escrow. This can take from 3 days to a week or so after you've submitted your first offer. This gives you and your agent time to do your due diligence and find out as much as you can about the property before you actually buy it.
3. Leave Low Balls to Drinking Glasses
On a hot house that is priced right, you can bet your bottom dollar that the seller is going to get what they are asking or very, very close to it. What that means for a buyer is is you really want the house and the numbers make sense, give the sellers what they want.
If there are multiple offers and they are pretty close in price, there is no guarantee that the seller will not ask for highest and best, but giving them what they want up front will better your chances of them not going for more.
4. Put Your Money Where Your Mouth Is
There used to be a time when one may have felt it didn't matter if you put 3% down or 20%, as long as you were able to get a mortgage. The seller was going to get her money at the end of the day regardless. Needless to say, that was a long time ago. With the shift we experienced in the market, let it be known that Cash is King. The more money you put down, the better your chances of getting the house.
In a sales transaction that will require a mortgage, it is advantageous to put down as much money as possible, as the appraisal is less likely to be of concern and your chances of getting the loan approved are improved. It is also more of a guarantee for the seller and shows your level of commitment to the transaction.
If you can Purchase with cash out right, you can usually get a discount on the price, as you can close quicker and the sale is guaranteed! (Go you!!!)
Multiple offers and preapprovals can be overwhelming for a seller. It becomes a bunch of papers without a face. If the offers are very similar, how does the seller decide which one to go with?? Well, let's give them something to talk about! You grew up down the street from the house and want to raise your family in the same neighborhood; you're new to the area, moving for work and this is the only house you've viewed that you felt connected with. Write the sellers a letter to be included with your Purchase offer and preapproval. I've seen a few of these as of late, and they really do make me smile. Imagine how the seller must feel receiving them.
I hope you find these tips to be helpful! If you would like more information on buying or selling homes, please feel free to reach out to me anytime. When you are ready to move, we are ready to help!
Whether you are looking to buy, sell, rent or just have that real estate question you need answered, call Kenyatta first! She can help! As a licensed real estate broker, Kenyatta has consulted w....