A SIMPLE, YET CRITICAL HOME BUYING TIP
Be prepared for the moment when you do find your dream home. Or it just may not end up YOUR home!
Whether a first time home buyer or fourth time home buyer; regardless whether you're buying in Aliso Viejo or any other Orange County California community or elsewhere - be prepared the moment you begin your home buying search. Otherwise, you just may miss out on your dream home!
Recently, I began working with a wonderful first time home buyer looking for her first home. During our initial consultation, we discussed all the important details of what she wanted in her residence - which is a very important fact finding mission. Yet, we also discussed the equally important preparations I require before we even began previewing homes - including getting pre-approved for a mortgage. I put her in touch with a loan representative who worked through her financial position and ultimately approved my client for a home loan. This armed us with a clear budget to work within to ensure we spend our timely intelligently and only preview homes she could afford. The loan representative also generated a pre-approval letter for the buyer, which is a critical document in purchasing a home. It could not have been more critical in this transaction!
During our first day of viewing properties, as we were driving to our next scheduled showing, I quickly happened to notice an interesting looking property with a for sale rider in the front yard. Since we had time enough before out next appointment, I suggested we take a quick look. We returned to the property and I quickly jumped online and accessed my Realtor MLS account. Interestingly, the property did not show up in my initial search, yet it appeared to have hit all of my clients search criteria. I discovered that the property was not listed as 'active' any longer, but was listed as accepting 'backup offers'.
I contacted the listing agent to confirm availability to access the home and to learn more of the status. The listing agent's client had received two offers on the property already, but he was unsure if either would go through as neither had been approved for a mortgage yet. <Insert picture of me with large cartoon exclamation point above my head!> Submitting a purchase offer today in this market that is contingent upon buyer receiving financing is risky and ill-advised. Especially when the property is in excellent condition and listed at a fair price. I informed the agent that my buyer was not only a ready, willing AND able buyer but that we had an approval letter in hand. The gauntlet had been thrown down - if my buyer liked the property, the seller should seriously consider an offer from my first time home buyer.
We walked through the property and my client immediately fell in love with the property. It was a lovely 1920's home that had been fully renovated and had the design aesthetic she adores. It was truly a turnkey home with a complete, down to the studs remodel. There was virtually an entirely new interior, including new electrical wiring and full copper plumbing throughout, (which is rare for a flip, but a welcome improvement for a home of this age). Such a major coup for my client! Plus, this home was larger, with a significantly larger lot than the other properties in the area that we had been previewing. The final critical item is that this home was slightly higher in list price. However, since the buyer was pre-approved she knew her buying power and budget and this property was still well within our pre-approved mortgage price range.
I called the listing agent again to inform he and the seller of my client's interest and reiterated her level of readiness to transact, and of course our possession of a loan pre-approval. I kindly put the agent on notice to quickly determine whether either other buyer would be able to execute the purchase.
Four hours later, the listing agent called back to inform us that after communicating with both prosepective buyers that they would in fact not be able to move forward and asked if the buyer was still interested in submitting an offer. That day I wrote an offer with my client and submitted with her pre-approval letter. Within 24 hours, the seller had accepted our offer, as is. While we certainly had to work through some minor road bumps during the escrow process, it was nothing we could not handle and rectify. And the rest they say is history!
Oh, did I mention my buyer was able to have her offer accepted and ultimately purchased the property for several thousand less than the previous two offers? That is the power of being prepared right there!
When you are ready to purchase your first or your next home in Aliso Viejo or elsewhere, be sure to work through the critical aspect of loan pre-approval in advance. You'll learn what you can afford, search intelligently within your budget and be able to pounce when you do walk into your dream home.
Comments(4)