Carlsbad Buyers, Are YOU Prepared to Make an Offer?
For many Carlsbad buyers, making an offer prompts a great deal of anxiety and emotion, especially considering the amount of money involved.
In our competitive market where home tours are more like a party, with multiple offers and plenty of cash buyers, you have to be prepared.
Carlsbad Buyers, Are YOU Prepared to Make an Offer?
If you aren’t prepared, you are wasting your time and your agent’s, plus you won’t get the house you want. Although if you aren’t serious none of this matters anyhow.
Here’s what I recommend:
TALK WITH YOUR REALTOR
Your REALTOR is invaluable in helping you plan an appropriate home buying strategy. He or she can also help you understand current market conditions (e.g., multiple offers) and what to expect with regard to making an offer, whether it’s a short sale, REO or traditional sale.
REVIEW THE CMA (Comparative Market Analysis)
As in a listing, preparing a market analysis based on recent comparable sales and inventory will help you make the right initial offer. No one wants to overpay, but with the competition a low offer will simply not work.
MAKE SURE YOU HAVE A CURRENT PRE-APPROVAL
No offer will be accepted without a current written pre-approval, not one that is months old (and NOT a pre-qualification). Some REOs and short sales also require you get pre-approved by a specific mortgage professional from the bank who owns the home (the REO) or who holds the 1st lien on the short sale.
HAVE PROOF OF FUNDS (POF) READY
It’s common for a POF to be requested for buyers with loans when purchasing an REO or short sale to document you have funds for the down payment and closing costs. Certainly in ANY cash purchase you must provide a POF. Very recent documention is essential – a 3-month old bank statement won’t cut it.
REVIEW THE STANDARD OFFER PAPERWORK
You should already have seen a sample copy of the standard offer paper work (it varies from state to state) and hopefully reviewed it with your agent. There are key decisions to make to structure a competitive offer – price, time for closing, buyer and seller costs, financing terms, time frames, contingencies (loan, appraisal, property investigation, HOA docs, government reports) and more.
WHAT TERMS AND CONDITIONS ARE IMPORTANT
While your offer (and final) price are something you must decide on, other terms and conditions might also be important to you. The date of closing may be one. How soon can you close and move, and are you willing to negotiate closing date for the right price? How much deposit can you put down (practice varies but a low deposit does not demonstrate good faith and seriousness)? Are you asking for all appliances to be included, and are the particular fees you want the seller to pay?
GET IN THE RIGHT FRAME OF MIND
In our market with around 2 months of inventory, be prepared to make a strong offer and realize it’s likely your offer will not be the only one. Act quickly and try to offer the best terms and conditions you can. If you dilly dally while you think about it, especially on a new listing that is well priced, you will lose it. You also have to prepare for the fact that the best offer you can or want to make may not be enough, and you will have to keep looking.
Ready to make that offer? You should be now!
Ready!! Aim!! Fire!!
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