Keep losing the home to other offers? Maybe your offer needs curb appeal.

Are you a first time home buyer that keeps losing your favorite home to other offers?  Something in your offer to purchase isn't looking very attractive to a seller.  Did you miss something? Is your offer too low? Maybe it's that your offer to purchase needs curb appeal.

A seller does not want their property to be removed from the market unless they think the buyer is a strong buyer.  They want a sure thing or as close to a sure thing as they can get.  In many cases the seller may have an offer on another property or may be close to defaulting on their mortgage and a failed transaction could cause them great hardship.

If you're using FHA, VA financing or have a small down payment the odds are stacked against you.  In the states I am licensed there is a large percentage of offers to purchase that are all cash offers.  The all cash offer can close quickly and also removes the risk of failed financing.  FHA and VA financing has always been less desirable to a seller because of the property condition requirements, additional paperwork and because it doesn't require a large investment by the buyer or good credit. This may cause some sellers to consider the buyer risky.

It's tough to compete with cash. Don't get discouraged.  Sometimes all cash offers are low. There are things you can do with guidance from your Realtor to give your offer to purchase some "curb appeal".

Earnest money: $500 doesn't cut it in the states in which I do business.  Show them you're serious and step it up.  When I've sold homes in the past I would take an offer with a $5,000 earnest money deposit more seriously that a $500.  $500 makes it look like the buyer has little to no money and therefore is usually judged as a risk.  Doesn't mean it's true but first impressions are everything.

Pre approval:  A loan pre qualification is worth as much as the piece of paper it's written on.  A pre approval backed up by a D.O. approval from Fannie Mae holds much more weight.  Better yet have your mortgage loan underwritten before you search for a home and include the commitment letter with your offer.  This is the strongest approval you can get and as long as title work and the appraisal have no conditions, your loan is pretty much guaranteed to close.  If your lender doesn't offer this service, we do.  We'll get you a full approval from an underwriter before you look for a home. Send us an e mail

The wording in your pre approval letter: Your lender must choose their words carefully.  Certain words can leave a home seller uneasy or comfortable. Untrue words can land you in court.  Before you let your agent submit the pre approval letter with your offer,  make sure you read the pre approval letter yourself and put yourself in the position of the seller.  If this was you selling a home does this letter make you feel confident that the buyer is a low risk?  Is the letter truthful?

Appraisal and loan contingency time frames.  Many sellers like to know that the transaction can close quickly.  I have personally had a lot of success by reducing the appraisal contingency time to 10 days and simultaneously have reduced the loan contingency time frame.  If I already have an underwriting approval and commitment letter all I really need is the appraisal and title to be cleared by the underwriter and I can close.  You're telling the seller, "I'll hit the ground with my feet running".

Your professional Realtor can provide you the best guidance on preparing your offer to purchase.  They have undergone rigorous training, have dealt with all types of nuances and deal with real estate every day.  Listen to them.  They know better than anyone what strategies are working best in your community to convince a seller to accept your offer over others. Every situation is different and these are meant to be ideas and methods that could be employed so always consult a Realtor.  If you need financing consider us.

 

New Office!

2990 Jamacha Road #136  El Cajon CA 92019

Nevin Williams NMLS #69651