Tips to Secure Your Offer

Tips to Secure Your Offer

 

What Are Your Options Today When Buying in the Current Real Estate Market?

For buyers, there is no more waiting on housing prices to stabilize or lay low, hoping they are decreasing in the future. You also have to start coming to the realization that interest rates are on the rise. Higher rates mean lower qualifying mortgage amounts and lower buying power, in an accelerating market. Buyers looking to purchase in the next 6 months should not be holding back. The value of borrowing at lower rates far outweighs the hope of home prices coming down. Most market experts feel like this is just the beginning.
 
You need to ask yourself, “How can I get it” in this market, not ask “What can I get it for?” You need to be READY and ABLE to buy NOW. Today you need a fully underwritten pre-approval, better yet get your DU (Direct Underwriting) to make an offer that stands out from other financing offers and even helps compete with potential cash buyers and helps show sellers that you are a strong and qualified buyer. Of course, cash is still king. Just make sure you have your proof of funds ready. If you are financing, getting everything done as recommended above will help you compete.
 
Be prepared to write an offer asap, and have a title/escrow company selected as well. Be prepared with your initial earnest deposit which is due upon the acceptance of the offer. Find out what is important to the seller in terms of time frames. Some sellers want to close quickly. Others want more time. They may need to find another house themselves, or they may not be ready to pack up and move just yet. Have your real estate agent find out what time frames work best for the seller and tailor your offer to their needs.
 
Once you find a home you like, you need to schedule a time asap to see the house. An hour later, the home may already be under contract before you can even get to see it. This is the reality of our current 2022.
 
Get ready for multiple offers and be flexible. This year is different from all others. Keep in mind that not all homes are HGTV ready. Look for the potential or as we like to call it “the bones” of the home. Offering low prices could alienate the seller and cause you to lose a property you want. Homes are sometimes on the market for a matter of days or hours. You will need tough skin and be ready for heartbreak. With ultra-low inventory throughout the country, bidding wars on houses are the norm, not the exception.
 
Nearly every home sells for asking or even over. In our current seller’s market, there has been an increase in waived contingencies, leaseback, and appraisal waivers. A word of warning though: waiving inspections can cause some serious financial headaches down the road, so be cautious in exploring this option. Always know how high is too high to go and stick to it.
 
We suggest you look with an open mind. To begin the process of buying today, you need to be in a position of power to find your new home and to win the offer. You need to work with a team that has access to deal flow. Our team has a tremendous deal flow, as we have closed over 1 billion in South Florida, selling thousands of properties, with a consistent flow of new inventory we share with our buyers first. In an imbalanced market, we recommend working with a seasoned Realtor® or team. This is critical today not only to get first access to new inventory but also to utilize the leverage and broad connections of highly experienced Realtors®. Pick someone to represent you who understands the local market and has the experience to help you make a strategic, winning offer.
 
Ways to stand out as a buyer in today’s fast-moving seller’s market.
 

Escalation Clause

Do you want to win the house? Offering the most money for the house can be a winning strategy, as most sellers want to receive the highest amount of money for their house. But before you increase your offer, be careful to think this through and how increasing your offer will impact your mortgage payment. Second, consult with your real estate agent to make sure you’re not overpaying for a house.
 

Offer to Pay for the Seller’s Closing Costs or a Portion of Them. Offer to Pay for the Realtor’s® Fees

This may help with appraisal concerns and potentially the tax basis for your home (Of course you should consult with a tax professional). Also, be open to a seller remaining in the property and possibly even purchasing the furniture if a seller wants to re-furnish their new home.
 
As you can see there are complexities in the market but over my 34 years in the business, it is not a challenge that we have not seen before. At the end of the day, a home is a life experience, a place you live, sometimes work now, play, and relax. Get the support you need so you can quickly move to the enjoyment phase of owning a home.
 
  • #1 Coldwell Banker Team in Broward County 2018, 2019, 2020 and 2021
  • Ranked #1 Agents in the City of Weston for 14 ▸Consecutive Years! 2008-2021
  • Coldwell Banker Residential Real Estate Society of Excellence 2015-2021

Work With Our Team

The Sklar Team has been recognized as the Top Weston Sales Associates for the past 15 consecutive years, earning the prestigious Coldwell Banker International Society of Excellence since 2015. We live, work and play in Weston and believe in the quality of the lifestyle. Contact us today to start your home searching journey!

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