We are in a very unique, time sensitive market these days that tends to sway from a buyer’s market to a seller’s market in the course of a weekend. Wondering whether or not you have the upper hand? Here are some indicators.
Generally speaking, if the sellers are under a time constraint or there are dozens of other houses on the market in the area, you may be able to negotiate a better price on a property. However, if more people are buying than are selling, supply goes down and demand goes up, as should your purchase offer.
Here are some tips to keep in mind when making your offer.
- An all cash offer means there are no loans to fund, and no hoops to jump through with the bank. All cash, all done. This type of purchase usually means a quicker escrow and closing date, and is extremely inviting to the seller.
- If the seller needs to sell quickly (i.e. a job transfer out of state, they are in danger of foreclosure, they just bought an upleg property and need to sell theirs) they may be desperate enough to take a lower offer.
- If the home has been sitting on the market for a long time with no offers, that generally implies the listing price is too high. Whatever the reason may be, people have seen the house and it still hasn’t sold, this would be quite frustrating for the seller and they may be willing to negotiate that price a bit more.
- A clean offer, or one in which there are few to no contingencies, is best. If you truly found the house you want, don’t mess up the offer by requesting minor repairs or including the fridge, washer/dryers and the pool table. Keep it simple and “clean.”
- Add a human touch to your offer, maybe a picture of your family or a letter explaining how their house would be a perfect place to raise your children. Also, if possible, listen to the other party and understand where they are coming from. A seller is much more apt to hand over their home to someone they’ve met and like, rather than someone trying to get the best deal.
In our current market, there is still very little inventory, but tons of buyers, and we are seeing multiple offers at or above listing price within days of the house going on the market. This would be a seller’s market. So, in this case, if you really want the house, your offer is going to need to be at or above asking price to stay competitive.
Anyone can, and may, make an offer. But do you want make an offer,… or do you want to buy a home? Be aggressive and act quick.
Next month I’m recruiting a guest author, my in-house loan officer, Josh Reikes, from Bank of Manhattan, to give you some tips on how to save tens of thousands of dollars on the purchase of your next home. Josh is the man that literally wrote the definition on pre-approvals. I posted it in Wikipedia myself. See for yourself here: Pre-approval.
If you’re ready to start the process of purchasing your first or next home, call me today to set up an appointment. 310-722-5959.
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