Path to Homeownership: Tips on Getting Your Offer Accepted

The market has changed to a sellers' market. A sellers market is when there are more buyers in the market than available inventory. Which sums up to the higher home prices due to more demand than supply. In this current market, sellers are receiving multiple offers from homebuyers, which makes the market more competitive. If you are a FHA financing recepient...I've compiled some tips that may make your offer more attractive:

1. Choose your agent wisely: Choosing an agent that is familar with the FHA process, rules, and regulations will save a home buyer a lot of time. The right agent will know which properties will qualify for FHA financing. It is important to note that distressed homes are sold As-Is, so chosing a home that meets FHA requirements is half the battle. 
2. Homebuyers...be sure to have all your documentation together: When your agent submits an offer the following documentation is needed: Pre-Approval letter, a copy of your earnest money deposit, proof of downpayment (some sellers are asking for this...better to have it upfront than not) and the purchase agreement. 
3. Communication is key: Agent to agent relationships are vital when submitting an offer, because you are purchasing distressed properties there are certain questions that your agent should ask before submitting an offer. Remember, there are different types of property on the market (Bank owned properties, short sales, HUD homes, flip properites, traditional sales, etc...), so it is important that your agent is familar with all of these transactions and speak to the listing agent to understand the situation of sale before submitting the offer. 
4. Did you make a fair offer? There is a misconception that if you submit an offer above asking price that you have a better chance on getting your offer accepted. The truth is that if you have a FHA loan, your lender is not going to allow you to purchase the home above market value (unless you are willing to pay the difference at closing...and the seller may ask you to do that if accepted). Your agent should do a market analysis to make sure you are submitting a fair market value offer. 
5. Conditions & Contingencies: Decreasing the contingency period for the inspections, appraisal and loan lets the seller know that you are a serious buyer. Typically, for FHA 45 days is the standard amount of time for lenders to close on a loan. However, have your agent speak with the lender to see if that time frame can be reduced to 30 days and they realistically will be able to close within that time period. 
6. Consider Purchasing a HUD Home: There are a lot of positives in purchasing a HUD Home. (1) HUD Homes are already approved for FHA financing (Refer to Path to Homeownership: Utilizing FHA financing to Purchase HUD Homes); (2) There is an electronic bidding for HUD homes; (3) The first 30 days are set aside for owner occupants, so there is no competition against investors (a huge plus); (4) HUD allows up to 3% for closing costs. (5) Utilize a 203(k) Renovation Loan. For additional information on purchasing a HUD Home refer to: Path to Homeownership: Purchasing A HUD Home in a Distressed Market