Tight Real Estate Market - "Homebuyer Strategies for Success"
Charlotte's housing market is incredibly tight and getting tighter by the day. Read on for some great strategies to ensure you get that dream home you've found when you might find yourself in the midst of a bidding war. A tight market with low inventory calls for very different negotiating than one flush with homes.
The market is competitive out there. There are bidding wars, a lot of cash buyers and prices are going up with inventory going down. You can find home buying success! Here are a few tips:
1. STAY CALM Buyers can get caught up in the stress of the moment. Do Not spend more than you can comfortably afford. Take a deep breath and stay conservative.
2. MAKE YOUR BEST OFFER Be realistic. If you are bidding on a home in a multiple offer situation, you have this chance. "Be Bold". It is not unusual to have the best bidder be the buyer who just lost a bid on another home and learned how it is done. Some will go over by $5,000 or so, why? Well, as prices go up in a few years that $5,000 will mean very little, after all it is a rising market.
3. CREDIT CHECK Before setting foot in an open house, or looking for a Realtor, check your credit reports. If you see anylthing that is not correct, this is a good time to make those corrections. If you do your homework on your credit ahead of time you will be prepared to talk to your lender. You want to be sure you are looking in the right price range. Don't fall in love with a $400,000 home is your budget is $250,000! In our area, you can not write a contract without an approval letter from a LOCAL lender, or proof of funds if you are a cash buyer.
4. ACCOUNT FORE ASSETS In our area, you can not write a contract without an approval letter from a LOCAL lender, or proof of funds if you are a cash buyer. "Preapproval is absolutely a MUST" in competitive markets. You offer carries more weight when you can prove that you can close the deal. Be prepared for a stringent underwriting process. Lenders are looking for consistent income. If you receive a gift or have a funds transfer, it must be well documented. They will make sure this was a gift and not a "Phantom Loan". All money must be documented. NO MATTRESS MONEY!
5. BIG DOWN PAYMENT If at all possible bring more than the 20% down to the table and your offer will carry more weight. A strong offer has a serious escrow deposit. If you are putting down $1,000 in escrow without offering additional upon acceptance by the seller, you could easily lost that house. Sellers know that a large escrow deposit reduces the possible bank problems in the future.
6. BE NICE Stand out by making life a little easier for the seller, for example a flexible closing date as well as a nice escrow deposit. After all, all things being equal in an offer situation, a flexible settlement date for the seller can win the contract. After all, they are moving too, not just you.
7. FIND A GOOD AGENT An experiences real estate agent or agent team will keep you posted on all current inventory and give you tools to see everything that is new on the market as you are looking for that new home. Plus, if your agent is well respected in the community of local realtors it matters. If your agent has a good reputation in the community it will help. We must all want a Win/Win for all parties.
IT IS ALL ABOUT YOUR REAL ESTATE NEEDS
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