It's been way too long since I've blogged. I blame the Spring market keeping me busy or maybe my week long vacation to Redondo Beach, CA to visit my sister and brother in-law, but honestly that's really no excuse. So here is my most recent experience that I feel buyers will find helpful in todays real estate market.
While I was away in California, I submitted 2 offers for the same buyers; both of which were rejected for more favorable competing bids. Although it's disappointing and frustrating, my buyers just found a home they both loved (husband and wife didn't always see eye to eye), offer is accepted and we are moving forward with inspections this week. I'm truly a believer in "what's meant to be will be."
*How do you handle bidding wars? How do you beat the competition?*
First a foremost, don't get serious about buying a home without a mortgage pre-approval letter. A seller will not even consider your offer without proof from a bank that you can afford the home.
Secondly, go in strong with the intention of really wanting to the home. Even when there are not multiple offers, make an offer that you believe is fair.
Have your Realtor call the listing agent to get an idea if 1. there are other offers 2. does seller have a settlement preference (it's not always about price, convenience is a negotiating term too) 3. if they would give an idea of where the offers are i.e. low, around asking, over asking, etc.
I'm not going to sugar coat it, usually stronger financing (i.e. 20% down) or cash deals win over FHA or VA financing. Sellers like the stability of a lot of money down. But it's not always the case. One of my sellers chose an FHA buyer over a cash buyer because they felt the young family would enjoy and care for the home more than the other. This is unusual, but it can happen. T.V. shows have showcased buyers writing a letter and that honestly could help.
Third, eliminate or reduce contingencies. I recommend having the mortgage and inspection contingency, but if you can waive certain inspections, that helps.
Also, consider not having an appraisal contingency. Or even reduce the mortgage contingency to 20 days instead of 30 if your lender can do that.
Having an experience buyers agent by your side is priceless in todays market. Multiple offer situations are just one more reason why you need someone representing and fighting for you.
If you have questions or want to start your buying process, contact me today.
Kelly Kneeland Steyn
KSKneeland@gmail.com
484-343-2406
www.KellyKneeland.com
While I was away in California, I submitted 2 offers for the same buyers; both of which were rejected for more favorable competing bids. Although it's disappointing and frustrating, my buyers just found a home they both loved (husband and wife didn't always see eye to eye), offer is accepted and we are moving forward with inspections this week. I'm truly a believer in "what's meant to be will be."
*How do you handle bidding wars? How do you beat the competition?*
First a foremost, don't get serious about buying a home without a mortgage pre-approval letter. A seller will not even consider your offer without proof from a bank that you can afford the home.
Secondly, go in strong with the intention of really wanting to the home. Even when there are not multiple offers, make an offer that you believe is fair.
Have your Realtor call the listing agent to get an idea if 1. there are other offers 2. does seller have a settlement preference (it's not always about price, convenience is a negotiating term too) 3. if they would give an idea of where the offers are i.e. low, around asking, over asking, etc.
I'm not going to sugar coat it, usually stronger financing (i.e. 20% down) or cash deals win over FHA or VA financing. Sellers like the stability of a lot of money down. But it's not always the case. One of my sellers chose an FHA buyer over a cash buyer because they felt the young family would enjoy and care for the home more than the other. This is unusual, but it can happen. T.V. shows have showcased buyers writing a letter and that honestly could help.
Third, eliminate or reduce contingencies. I recommend having the mortgage and inspection contingency, but if you can waive certain inspections, that helps.
Also, consider not having an appraisal contingency. Or even reduce the mortgage contingency to 20 days instead of 30 if your lender can do that.
Having an experience buyers agent by your side is priceless in todays market. Multiple offer situations are just one more reason why you need someone representing and fighting for you.
If you have questions or want to start your buying process, contact me today.
Kelly Kneeland Steyn
KSKneeland@gmail.com
484-343-2406
www.KellyKneeland.com
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