Buyers - are you frustrated and tired from writing offer after offer while your offer does not get accepted. With multiple offers on both our REO and short sale listings recently, we are seeing frustrated buyers every day and some of them should not be disappointed.
As a buyer, do you know what you can do to increase the odds of your offer being accepted? The best chance you have of getting your offer accepted is having an experienced Realtor prepare your offer and pairing you up with a Lender that has a good reputation for closing deals. You also need to become educated about the market and the home buying experience yourself.
1. You need to make sure you are working with an agent who really understands the area. Not just one that can open the door for you but one that knows the values of homes in the neighborhood you are looking in. Make sure the agent runs comparables of recent sales and pending listings and goes over them with you. With the banks listing their properties often times 5-10% below the last comparable sale and multiple offers on 90% of the REO properties as well as the short sales, you have to be ready to offer market value.
2. Make sure your agent is being honest with you about the market value of the home. Agents realize you want a deal, so many don't actually tell you honestly that you are going to have to write your offer at market value in order for you to beat all of those other buyers that are just looking for a deal. You also need to be honest with your agent....let your agent know if you truly want a particular home and if there is a particular price you don't feel comfortable going over, let your agent know that as well. This will help the agent in negotiating.
3. Make your Earnest Money Deposit as large as possible. At least 1% is expected by the banks, however, this is the amount most buyers expect to deposit. Write your earnest money deposit check for more than what is expected. If it's a $150,000 purchase price, instead of the $1500 deposit, write your check for $2,500 or $3,000. And make sure that your check is not stale dated.
4. Don't ask for a 6% credit from the seller for closing costs, if you only need a 3% credit. It is not uncommon for a buyer to ask for a 3% closing cost credit, however any more than that may not be approved by the bank. You have to remember that the bank looks at their net and closing costs come off of that net figure to the bank. Work with your lender to figure out just how much of a credit you need to ask the bank for.
5. Make sure you have a preapproval (not a prequalification) from a local loan company and that it is for the amount of your offer. We unfortunately see many preapprovals come in with offers that are not signed by the loan officer, are for a lesser amount than the purchase price, or don't have any contact information for the loan officer. These offers are incomplete as far as the banks are concerned so they don't even get presented.
6. Do not ask for repairs to be made if the bank is selling the home "As Is". If there are multiple offers and you ask for repairs to be completed even if you increase the price to cover these repairs, the bank will most likely accept another buyer's offer. Banks do not like to have to make repairs.
7. Write the offer with a reasonable inspection period (5-7 days but no more than 10 days). Most banks do not allow over 10 days for inspections and this will let the asset manager know you are ready to get moving and will not delay the closing process.
8. Make sure your agent submits a complete offer. If there are additional documents that the listing agent requires to be completed or signed, they will usually be in the listing comments. Make sure that your agent includes them, otherwise your offer may be incomplete. In addition make sure that your agent notifies the listing agent of sending the offer and receives confirmation that it has been received.
Once again, the most critical step in this process, is working with a honest, knowledgable and dedicated real estate professional. To contact The Mode & DurhaM Team for a FREE NO OBLIGATION buyer consultation appointment, call us today at (916) 405-5765 or send email to Lori@ModeanddurhaM.com.
If you are a California first time homebuyer, ask your agent about the CAR Mortgage Protection program for first time homebuyers!
Want to know more about the first time home buyer tax credit....expiring November 30, 2009!
To sign up for our daily email updates for homes in your area, go to www.ModeandDurhaM.com or send email to Lori@ModeandDurhaM.com.
Search all Sacramento homes here!
Lori Mode and Bruce Durham, Keller Williams Realty in Elk Grove, CA
www.AllElkGroveHomes.com
;)
;)
;)
