In a Seller Market, a buyer has to have every document ready, prepare beyond other buyers bid, and hope that alone will be enough to get an offer accepted. For example, last year (2004-2005) multiple-offers is common. In order for buyer to purchase a home he or she has to have pre-approved letter, write a personal letter to the seller explaining why you want the seller property, and often time no contingency on the offer. Not to add, you over bid the asking price, and does this sound familiar.
In today market, inventory is plenty, and homes are on the market twice as long. Look as thought the market has shift to buyer market or balance market in some desire area. The question is still remained, should the buyer need to prepare all documents while in the buyer market? Such as pre-approve letter, write personal letter to the seller or even no contingency offer and hope the seller will accept you’re offered.
First, let’s look at the current market. The market has shifted to the buyer which means the buyer has the upper hand (the table has turn). It is still a common practice to have your loan pre-approve. Why? It shows the buyer are capable of purchase the property at that price, and most important negotiation…..if you work with experience REALTOR® they will show and help you to negotiate when purchase your home.
In today buyer market, a buyer whose prepare and ready will not only get offer accepted but also purchase a property at the right price. Here are list of documents I consider a buyers need to prepare in this market. And don’t forget to arm yourself with experience REALTOR® they can help make your home purchase happen. Buyer now has the opportunity to purchase home at the price they can feel satisfy knowing they are not over bid the property.
- Pre-approve letter
- 3 percent down (if possible)
- Buyer representation (A REALTOR® who represent the buyer only)
- Shorten the closing date (less than 25 days close)
- Personal letter to the seller (only in a desire area such as popular school)
CLOSING: In any market such as Buyer Market or Seller Market, it is to a buyer benefit to prepare, this will insure high rate of offer accepted. At the end buyer are not offer to seller but also to counter bid with other buyers. If no other buyer is offered for the property, the only buyer will have the upper end of negotiation table.
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