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#1 Top Tip for Home Buyers in Phoenix in a multiple bid situation

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Real Estate Agent with HomeSmart Real Estate AZ Broker BR030809000

#1 Top Tip for Home Buyers in Phoenix in a multiple bid situation

 

Phoenix Home Buyers please listen to this advice and follow it closely - but ONLY if you want to be in the running to win a bid for a home in the Metro Phoenix area HOT real estate market. 

 

 

Anna Banana Kruchten - Phoenix Real Estate Broker

 

Get Your qualifying ducks in a row BEFORE you submit an offer - just do it! 

 

What does that mean? That means that you should consult a trusted lender (ask your agent for referrals) and submit all the documentation that your lender requires upfront.  It is a very wise idea to know exactly what amount you can qualify for and that there is nothing in your credit report or documentation that needs to be clarified or cleaned up. Again - this should all be knocked out BEFORE you look at homes and most certainly before you submit an offer, especially in a multiple bid situation.

 

Why?  Consider this story: Seller meets with listing agent to go over 4 offers.  3 offers are  excellent and complete including ALL DOCUMENTATION and LOAN QUALIFICATION in place. 1 offer lacks a totally completed qualification form that is standard in our area and it states that the buyer has not submitted any of his documentation to the lender - none. The buyer is also is asking for seller to pay for all of buyers closing costs. When the listing agent asks the buyers agent for clarification on exactly what those cost are - to the penny - buyers agent has no idea and can't answer that question. He says he won't know  that number until the buyers lender completes the qualification process. 

 

What do you suppose the seller will think on the unknown cost asked of them?  Sellers will most likely toss that offer to the bottom of the bunch and work with the other 3  excellent and completed offers.  How can you ask a seller to pay for all of your loan costs in a multiple bid situation and not know how much that will be?  $6000.00?  $10,000? $15,000?  That just doesn't make any sense, does it?  No of course it doesn't. And it also makes no sense to not be totally approved before making an offer - at least as far as you possible can be totally approved. Your job is to make your offer SHINE above all others so you can compete with all the other buyers - that already knows this information.

 

Put your best foot forward - so to speak - if you're intending on buying a home in a hot real estate market. Ask your agent to see the recent comps of what homes are selling for and how long their on the market.  You might be surprised to see many homes selling over list with less that a week or a few days on the market.

 

Click here for more tips on making an offer in a multiple bid situation in a hot market

 

 

 

#1 Top Tip for Home Buyers in Phoenix in a multiple bid situation

 

 

 

 

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Comments(21)

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Melissa Brown
Helen Adams Realty - Charlotte, NC
Realtor - South Charlotte NC Homes for Sale

Anna, great blog post, and so TRUE!!!!!  Most important thing a buyer can do!  You mentioned a standard form in your area from the lenders.  How extensive is it?  Here, we find that most pre-approvals are just a statement that credit has been pulled but the buyer hasn't submitted any documentation.  Not worth the paper it's written on, IMO!!!

Jul 06, 2013 08:21 AM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Good advice Miss Banana............I'd sure take it from you if I was buying in the Phoenix area.

Jul 06, 2013 08:53 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Susan - it is so true and why buyers or agents don't understand this simple fact is beyond my comprehension. They don't have a fighting chance from the git go.

Melissa - needs to be said yet again.  Yes the form is specific and outlines what has been collected and what has not been collected from buyers and the details of financing and loan amount etc.  That plus a phone call to the lender is good idea. And yes I remember those worthless qualification letters.  These days we know which agents and lenders know exactly how to handle transactions and what to look for with others.

 Roger - come on down!  We'd love to have you in Phoenix!

Jul 06, 2013 09:46 AM
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

Anna, this is an excellent blog for every area that is a Sellers Market, like mine --Northeast OH (the Greater Cleveland Area).  Suggest.

Jul 06, 2013 11:13 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Pat & Steve - I am not surprised anymore to receive this type of offer - got another one like this today.  I just wonder why the agent isn't making sure the buyers are better prepared before any offers are made. They can't possible compete with this type of qualification.

Jul 06, 2013 11:43 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

This is something all buyers should do before they even start looking for a home. Most buyers think that their credit is okay but there is always something that needs to be cleared up! Great advise!

Jul 06, 2013 12:28 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Anna, I can't imagine in a highly competitive situation not having the financing all set up. At least in our area that has not been a problem.

Jul 06, 2013 12:59 PM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

Anna, such great advice. I actually (sadly) lost a listing because the buyers I brought just missed the mark on qualifying...lesson learned!

Jul 06, 2013 01:29 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Anna

How ironic, but perhaps not...I just finished a post along the same lines that will be active tonight! Great minds...but a critical subject for buyers to be aware of. As a listing agent I will would not advise my sellers to consider an offer that does not include a comprehensive pre-approval, and perhaps a chat with the loan officer.

Jeff

Jul 06, 2013 02:03 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Anna this reminder is on of the first and most often thing i am telling buyers. Not only do buyers who are not pre-qualified miss out on homes, some agents wont even let through the door to see it. 

Jul 06, 2013 10:50 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Anna, in hot Seller's markets, it is a wonder there are still buyers with no pre-qual or pre-approval letter before doing the home search.     As you state clearly, there offer won't stand up to others that are ready, willing and able.

Jul 07, 2013 01:02 AM
Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

That's a blind offer, Anna. And not one I would recommend my sellers even consider.

Jul 07, 2013 03:51 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Sussie - there always are a few surprises it seems.  And really even if there are none - they need to put their best foot forward to show the home seller than can afford to purchase the home.

Debbie - I've had far too many agents submit offers without financing in place - another one yesterday.  Buyers will loose out for sure in a hot competitive market. Seller will chose the buyer with the best offer as well as complete and full loan approval in place.

Gayle - never again I'm sure!

Jeff - it just makes sense.  Great minds on the same path. You must be seeing what I'm seeing right now.

Scott - there is that as well.

Joan - no they won't.  Buyers MUST have every ounce of proving they can close the transaction upfront.

Toni - neither would I.   What I find interesting (well not really anymore) is agents argue with me about it saying - oh these buyers are good - well ok - then make sure it's documented!  It is my job as a listing agent to verify all information before I meet with the sellers so they know what they're dealing with and can make a good choice.

 

Jul 07, 2013 08:32 AM
Janice Ankrett
Burlington, ON
Staging Professional

The more I learn about buying and selling homes the more the word competition comes to mind. If you want to succeed you have to be ready to compete in every way. 

Jul 07, 2013 09:44 AM
Mike Sibbald
Elevations Real Estate, LLC - Fort Collins, CO
Broker/Owner Elevations Real Estate, LLC

Anna what great tips here!  I hope that buyers and agents see this!  Sometimes us agents need reminding, Mike.

Jul 08, 2013 01:59 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Anna -- ducks in a row, t's crossed, i's dotted, complete package, submit everything that the listing agent requests ---- people like to do business with people who follow the rules especially when there many MANY offers to consider.   

Jul 08, 2013 05:32 PM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Anna:  Not sure what your cute little duckies call their "feet" ... but they need to be put forward in the best possible manner!  Not sure why any potential Buyer would avoid this vital step.  Getting a Pre-Qualification is fairly easily accomplished .. and it's is FREE.  What other service that is so important can you get conducted for FREE???  LOVE the post ... as always, you're the Pro!

Gene

Jul 09, 2013 04:59 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

Always sound advice and one would be very wise to get there ducks in a row. We as agents should be past the time of driving unqualified folks around.

Jul 09, 2013 01:24 PM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Janice - competition is having the right information and skill set.

Mike - it's critical for them to know this stuff too!

Michael never ceases to amaze me that agents fail to read mls agent instructions.  Received 3 more incomplete offers this week.

Gene - it happens and you wonder where they're getting such advice.  It's so important - but you know that!

Charles - indeed - ducks in a row makes the winning difference.

Jul 18, 2013 04:12 AM
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

@Anna Banana Kruchten CRS, CRB, Phoenix Broker

 Oops! A buyer's agent who doesn't know the amount his client is asking of seller.  Uninformed is not the person to be in this or any market. 

Great illustrations, definitely a must-read for buyers and their agents.

Apr 03, 2021 10:46 PM