The real estate market may have cooled down slightly compared to the recent past, but some markets still remain hot. No matter which particular market you may be looking in, some properties will be “hot buys” and are still receiving multiple bids. How do you prepare yourself as being competitive when you are submitting your offer? Here are some valuable tips to use and follow.
Prepare Yourself and Financially
Arranging all of your ducks in a row with regards to finances and assembling a good team are the perfect places to begin. Here is a better look at some specific action items.
Finances – Be sure you have saved enough for your downpayment and for your closing costs. Review your credit score as this will have an effect on your borrowing power.
Records – Collect all of your necessary documents that will be required for your home loan officer. This will be things like pay stubs, bank statements, savings account information, proof of additional income as well as any alimony or child support you may have to pay.
Research neighborhoods – Do your homework on select areas for what they offer you and your lifestyle, but also see how much homes with your needs cost. This will help you narrow down your search so you can act quickly on an appropriate property that becomes available.
The Right Lender – Working with a local lender can sometimes be helpful in a competitive deal. Local agents know local lenders and those with good reputations will be known for smooth transactions so this may give you preference in a deal.
Strengthen Your Offer
There are some other tips for drafting your offer to make it as competitive as possible. Here are a few things to consider.
Pre approval – Every offer should be accompanied by a pre approval letter, but some lenders will go further with the underwriting ahead of time to make your offer even stronger.
Downpayment – Another idea of how to sweeten the deal is to increase the size of your downpayment. This will show good faith to the sellers that your deal is stronger with more cash down towards the transaction.
Strong first offer – If you aren’t going to offer either full price or over asking, then make your first offer as strong as you can. Prove to the sellers how serious you really are with the amount you offer.
Be accommodating – The sales price is just one element of what makes an offer good. Being flexible on other things like the seller’s time frame, where and when to close and even sparing contingencies all will also be of interest and valued by most sellers.
Write a letter – Finally, think about writing a letter. This can appeal to the emotions of the seller by telling them in a brief note of why you love the home and why it is perfect for you. Most homes are full of memories for sellers and there can be value in the sellers knowing that it will be enjoyed in the same way and that they will be a courteous new neighbor.