Blog post 5/26/2021
I am certain most of you reading this blog post are aware that our market is considered a "seller’s market” with multiple offers expected on most properties AND almost all properties closing over their list price.
GREAT for sellers- but what about buyers? AND what happens if you are both a Seller and a Buyer? Unless you are considering a move out of the area it is daunting to consider how to make all this happen smoothly and without multiple moves.
Buyers need to be knowledgeable about the market, not just that they will be up against having to make offers OVER list price and competing with multiple buyers, but also how can they make their offers to purchase, “standout” so they are chosen by the sellers as the winning buyer. Your offer “standing out” will include price and terms, but also the finer details about the way in which your lender/loan is presented and how your agent presents your offer.
Here’s some items to consider:
Chose your lender carefully- not only will you want their rates to be competitive but also what you want is their ability to keep timelines short. Are they a lender who will pick up the phone and speak to a Seller’s agent? Communication is key. Listing agents like to know the lender is going to be highly involved in making the loan close on time and that you have excellent qualifications!
Has an underwriter viewed your file? Not all preapproval/pre-qualification letters are the same. Listing agents will quickly decipher which buyers are further along in the loan application process and being further along makes you more qualified/desirable with the ability for the loan to proceed faster. Chose a lender who can get their underwriter to review your file – before you make an offer- that will allow you to have short timeframes for finance contingencies, or in some cases NO contingencies.
Have you reviewed and signed all the disclosures the seller has provided, and does your agent include them with your offer? Ask your agent if they have completed their “Agents Visual Disclosure” with your offer- this form is frequently left out when a buyer’s agent presents the offer. Listing agents want to see that you are fully ready to move forward and there are no outstanding paperwork/disclosures left to be completed.
Agree to wire your 3% good faith deposit to Escrow the day after your contract is accepted. This costs you NO $ and again shows the listing agent you are fully ready to move forward and committed.
Has your agent communicated with the listing agent prior to sending or presenting your offer? Asking what is important to the seller, so that you may be able to tailor your offer better to the seller’s needs: Is a leaseback needed? What would be a “good” close of escrow timeframe for them? Are there items the seller would like to exclude or include with the sale? (the MLS will frequently state the seller’s preference, but the MLS does not include all the details, so it doesn’t hurt to ask)
They say the “devil is in the details” and these “details” don’t cost anything to implement. Ask your lender and agent about how they handle the “details”…. You may surprised and delighted your team is already doing these things OR you might decide that you need a different approach.