Buyers, Are You Prepared for Competition?

House buyers are finding lately that they are competing for homes. This is something we haven’t seen in years when house-hunting. Are you ready for to compete for your Dream Home?
With housing affordability high and mortgage rates low, home buyers are ready to cash in but they’re finding a lot of others are as well. Bidding wars are becoming more common for homes that are priced right in good condition due to low inventory.

As your agent, I can show you how to be prepared to compete for the home of your dreams. To be prepared here are few things I advise you to do as a competitive home buyer who's ready to have the winning bid:

• Long gone are the days of shopping THEN looking for financing. I encourage my home buyers to be fully prepared and pre-qualified before they take the first step into a home. Being pre-qualified with give you an idea of what you can afford and what's within your budget. Find a great lender who's going to be able to respond to your needs in the nick of time. There has been times when delays can mean you aren't first in line with an offer.

• Make sure to have your Earnest Money deposit ready to put down with the offer you make on your Dream House. Earnest Money is defined as a good faith deposit but not to be confused with a down payment. When buyers execute a purchase contract, the contract specifies how much money the buyer is initially putting up to secure the contract, to show "good faith," and how much money all together will be deposited as a down payment. The balance is generally financed as a mortgage or a combination of mortgages. An earnest money deposit says to the seller: "Yes, I am serious enough about buying your house that I'm willing to put my money where my mouth is."

•  Make an offer that is competitive. If a home is fresh on the market and you come in with a low ball offer and asking the seller for buyer concessions, chances are your offer will either be countered or rejected. Allow me to do a Market Analysis on the property to see if its sitting on the market 

While having stellar financing and a good knowledge of home values and the seller’s desires are all important to buyers in a competitive market. As you agent, in a competitive market, I also provide a nice letter outlining your families desires and wishes to call their house your New Home. Sometimes a simple step as writing a letter to the sellers is just enough to push your offer past those of other buyers offers.

Source: Washington Times