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"There are NO Homes available" ......... or, that's what we hear from frustrated buyers.
Each time I write a pre-qualification letter I ask buyers if they have started their search for the new dream home.
Talk to your Realtor and get their professional opinion of the value for the home you want. Make a realistic offer that they can accept.
Offer gets submitted and many times they never get a response from the sellers. Days later the buyer calls back after realizing that it WAS the perfect home, astonished to find that the home is already under contract. They also discover there were multiple offers and they are confused... and often times upset. Then I hear "why didn't you tell us to offer more?!
How can we compete???
There is no magic answer...... but there are several tips that will help make the offer stronger.
Get PRE-APPROVED with an entire loan package completed...
It makes a big difference when we can tell the seller that we are ready to go.... all we need is a property. Many lenders write a very basic and vague letter " We have looked at the info YOU provided and it kind of LOOKS like we MIGHT be able to do SOME type of loan. Maybe....sorta....if the moons and stars all align. Go the extra mile.... it makes a difference
Have the buyer write a personal letter to the seller...
Yes, this actually works. We ask the buyer tell why they really want THIS house. Tell about their family and what it will mean to them. Sellers do like people to be Owner Occupants.... IF the net and loan terms don't cost them anything. which leads to the next point....
Ask for what you truly NEED...
If you want to compete with the other buyers, ask for the same thing...
AS-IS.... no seller paid inspections or reports. NONE. Get all of the inspections you want, but at your expense and NOT part of your acceptance of the home. In other words.... use the reports as a to-do list. Things you will be able to do as your time and funds permit. Most homes have some deferred maintenance..... especially home that have been lost to foreclosure or have been rentals.
Yes, there are some things they may make you walk away from a "Money pit". But, most items are things that you need to know will need to be fixed at some time.
You usually get one shot at an offer.... make it a good one!
The sellers are looking for the "BOTTOM LINE". If you are asking for a closing cost credit.... add that amount PLUS a little (or a lot) to the offered price. With prices at such a low level, adding this amount will STILL get you a home far below values of 4 and 5 years ago.
I hope this gives you a little more help in writing that perfect offer that will ultimately get you into your new home.
Happy shopping