Attention 2021 Homebuyer's
When buying a home in this competitive Mobile County real estate market, it can become stressful. Especially during so now in a seller’s market when inventory is extremely low, and multiple buyers are competing for the same properties. During this week, a seller received 20 offers on 1 property with several being cash offers. If you follow me on social media, you saw the facts of that. It is not unusual for a seller to receive that many offers when there’s very little inventory on the market. I know you are asking yourself; how can you win the bid on a house with multiple offers? If you have found the one your dream home, make sure you offer stands a chance in a bidding war with these few tips listed below.
1. Getting Pre-Approved - Being pre-approved is leverage in this current market. Being pre- approved let the seller's know you can afford their property by providing them with a copy of your pre-approval letter. This shows the seller's that you are less of a risky buyer and you have already taking care of the financial side of things.
2. Access the best Home Search Tools -A licensed realtor can give you direct access to the local MLS where the most accurate and up-to date information about any listing will be found. The houses you find on Zillow, Realtor.com, Etc. Are typically gone-meaning they are pending, under contract within 1- 24hours of hitting the market. So, ditch the third-party app so you will not waste time checking out something that is no longer available.
3. BE AGGRESSIVE AND PREPARED TO ACT -You will need to be ready ASAP to go see properties that match your criteria as soon as it hits the market. Do what you can to make arrangements with work and other commitments that will allow you to look at properties as quickly as possible. Be ready to act as soon as you fall in love with the place and submit an offer.
4. DON’T UNDERBID - When you are ready to submit an offer, understanding the market is key. Do not rely on wiggle room to negotiate the price with the seller. Your initial offer should be your best offer. When there are multiple offers, the seller typically will be most concerned about the guaranteed net dollar amount they will get in the end. Plan with your budget and make sure you have spoken with your loan officer and know all the details on how much you can afford comfortably so you will know how high you are able to go.
5. HAVE CASH ON HAND- It is usually all about the seller’s net gain in the end, so plan to cover your own closing costs. Typically, when the market is a lot slower your realtor will negotiate the seller to pay if not all at least half of a buyers closing cost. In this current market, it will be more appealing if you planned to cover if not all but most of your closing cost. Also have cash on hand to be able to Increase your earnest money deposit to show sellers you are serious.
6. CLOSE QUICKLY- Unless the seller has disclosed a desire sale date, agree to close on the property as quickly as possible. Within 30 days is a good target.
7. AVOID CONTINGENCIES -You do not want to load your offer with contingencies which one may say is typically a request to the seller. A few examples of request would be in layman's terms 1. Buyer request seller to pay for their home warranty 2. Buyers request the seller to pay for their termite inspection 3. Buyers request the closing to take place XYZ Title company … only a few examples. When it is not a seller's market it is usually ok to negotiated the seller's to take on a few of your expenses.
8. BE WILLING TO BE FLEXIBLE. You may not be able to find those top 5 must-haves and that is ok. This is NOT YOUR FOREVER HOME , THIS IS YOUR FIRST HOME. Do not allow cosmetic things throw you off. Example: A dark paint color, ugly carpet, or a light cabinet color. Those things can be an easy fix just by taking a trip to Lowes.