Everyone gets excited when they find their dream home. However, it can be easy to miss out on your chance to get a new home if you’re trying to buy in a competitive seller’s market. Therefore, you’ll need to act quickly when a home comes on the market you want to buy. You will also need to be prepared to make an offer, which is achievable, by keeping some essential tips in mind.
Making an Offer
When you’re trying to buy a home in a competitive seller’s market, industry experts say that you should always anticipate facing serious competition from at least several other offers. One of the best things you can do is be prepared with your offer by following these recommendations:
- Earnest money deposit
- Scratch the favors
- Stall buyer possession
- Provide proof of funds and preapproval
Negotiating the price of a home is a common tactic among home buyers. While you can ask for a lower price, don’t offer a price lower than the listing price. Additionally, keep in mind that you may need to raise your offer for the home beyond its listing price.
If they’re trying to decide who should buy their home, homeowners are more inclined to sell their homes to prospective buyers who make the largest money deposit. If you are working with a real estate agent, they can provide advice on your deposit amount. Be prepared to double or even triple your deposit amount to make your offer more competitive.
Another way to make your offer more appealing to sellers is to skip the favors. Even if you’d like to have the front door repainted before buying the home, for instance, or you would like to move in to your home with new appliances, skip the favors as you’re trying to make a competitive offer.
While you should move quickly to make an offer on a new home, it’s worthwhile to take the opposite approach with the seller. Sellers appreciate having a little extra time to sell and move out of their homes. When you close the deal, offer to give the seller a few more days for moving.
Before making an offer, you will need to prove that you can pay for your home. Therefore, it’s essential to make sure that you get pre approved for mortgages Las Vegas in advance. If you are working with a mortgage lender located farther away, look for a local lender instead. Before submitting your documentation to the seller, make sure that your pre approval letter’s date matches the date on your offer and the sales price.
Be First in Line for Showings
Once you’ve checked off the list of preparing for a fast close on a home in a competitive seller’s market, you will want to be ready to see your dream home in person when you have the chance. Many prospective buyers wait for the weekend to schedule an appointment to tour a home. By scheduling a time to see the house on a weekday or when a showing is first advertised, you’ll be a step ahead of the competition. If you like the home enough to make an offer, give the seller a quick and clean offer as soon as you can.
Make a Sizable Down Payment
To maximize your chances of getting a home, it’s in your best interest to make as large a down payment as possible. The down payment amount might vary depending on the type of mortgage, such as a fixed rate mortgage loan Las Vegas or a VA home loan Las Vegas. Talk to your lender to discuss the maximum amount you can offer for a down payment within the program limits and your own financial comfort zone.
Tack on an Escalation Clause
In the eyes of a seller, an escalation clause is the sign of a serious buyer. An escalation clause means that if another person makes an offer on the home, you are willing to increase the price to a certain amount. Be aware that the bidding can go both ways. If you increase the price you’re ready to pay to a certain amount, the seller may do the same. If that happens, it’s called a counteroffer, which usually then replaces the offer in your escalation clause.
Pay With Cash
Another way to show that you are a serious home buyer is if you offer to pay for your home in cash. If you finance your home with mortgages Las Vegas, you are sometimes limited by the lending process’s terms and conditions. Lenders may take on requirements before buying the home, such as adding in appraisal contingencies or requesting an inspection of the home first to protect themselves. Aside from bypassing a lender’s requirements at closing, offering to buy a home in cash indicates that you have the financial means necessary to finalize the closing and do so quickly.
Buying a home in a seller’s market requires speed and efficiency. By following these simple tips, you’ll be well on your way to making a fair offer when the opportunity arises. If you have questions or need additional advice, don’t hesitate to contact an experienced loan officer for expert advice and assistance. A loan officer can provide tips and offer support to help you land the home of your dreams.