We have all be inundated with news stories about the local, regional, and national real estate market. It’s basically called supply and demand. Low interest rates created more buyers and at the same time, low inventory has created multiple offer situations in almost every transaction depending on the price point. And sellers are hesitant to sell because of the low inventory; where would they go?
Best advice for sellers is to price it realistically and let the buyers dictate the price. If you push the price, you will be discouraging buyers and their buyer’s agents that know the property is overpriced.
Advice for buyers? Follow these tips to make your offer as strong as the competition:
- Get a pre-approval from a lender, not a pre-qualification. In other words, give the lender all the documentation upfront. The more prepared you are the better the process is.
- Pro & Con List. Make sure that this is “the” home, get the local comparable stats for the neighborhood or area.
- Have a strong down payment amount, this shows the seller you are in a good financial position.
- Increase earnest money. One percent may not be enough depending on the price point. If the seller’s agent wants the earnest money non-refundable, only do so after your inspection and appraisal.
- Over asking price offers and escalation clauses. Make your offer as clean as possible! Limit contingencies. Right now, some buyers are waiving a home inspection and appraisal condition.
- Get your home inspection subject to the discovery of a health or safety issue. Do not renegotiate over minor items.
- You can waive the appraisal condition only if you have the funds to pay the difference from the contract price vs. appraisal outcome.
- Consider offering a one month rent back to the seller. That gives them time to pack, look for another place or simply lessen the stress of a move.
And, most of all, trust the experts in your home purchase or sale process!
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