Today I’m here to discuss four very important tips for surviving a seller’s market.
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Our market has been fairly competitive, so here are four tips that we’ve compiled to help buyers compete more favorably in a tough market:
1. Submit a large earnest money deposit. Earnest money is like a deposit you can put down with your contract. The great thing about earnest money is that as long as you adhere to the contract, that money is never at risk. If for some reason an inspection turns out badly or things don’t otherwise work out, there are ways you can back out of that contract. The larger the deposit you put down, the more attractive it makes you look to a seller.
2. Make sure you’re pre-qualified. This is extremely important; listing agents looking over offers want to see that you’ve been pre-qualified with a reputable local lender. A pre-qualification letter will show the seller of the property that you’re serious and qualified to move forward with the transaction. If the lender you’re pre-qualified with is local and reputable, it will always carry more weight in the seller’s eyes.
3. Give the seller time to move. Once their home has been sold, a seller will need time to pack their things together, coordinate their families, and move out. If you don’t give them a lot of time to pack up, that will create a very stressful experience for them. If you include a lenient move-out time in your original offer, it might be a way to further incentivize the seller to choose your offer over others.
4. Write your best offer. There have been a number of times when I’ve worked as a listing agent to evaluate different offers on my seller’s home that I’ve seen a family who really, really wants the house for any number of reasons, but they’ll come up $500 or $1,000 short on their offer. If you consider this over the next 15 to 30 years, that $1,000 means absolutely nothing; it will make almost no dent in your monthly payment. I hate to see people miss out on getting a house that they love over $4 a month. Always put your best and strongest offer forward.
If you’re thinking of buying or selling a house, feel free to visit our website at www.RyanSmithHomes.com, or else contact us at any time. We’d love to hear from you.
