For the past few years, I have been counseling home buyers in Cedar Rapids/Iowa City Corridor like this: "When they offer on a home, the seller has 3 ways to respond":
1. They could accept the offer as written.
2. They could reject the offer.
3. They could counter back to the buyer to address the price or terms.
And should the seller counter offer back to you, as a buyer, you can accept, reject or counter again. But what happens when you don't get a response at all from the seller?
In today's fast-paced sellers' market, there is now a 4th option. The seller can choose to accept a competing offer and not respond at all. In a strong sellers market, it's not uncommon to hear nothing. Crickets. Especially if the offer is less than the listing price and the buyer is asking for concessions.
So what can the buyer do in a seller's market to get their offer accepted?
1. Find a professional agent and negotiator to help you leverage your buying power. If you are a first time home buyer and you don't have a subject to sale contingency (meaning that you don't need to sell another home in order to buy or you are currently renting), you possess a powerful edge over other buyers.
2. Find the best loan product and lender to answer your questions. Not all loans are created equal. Depending on your needs, a 30 year fixed mortgage may not be the best use of your money (consider how long you plan to live there and whether PMI makes sense).
3. And what about closing costs? Many buyers need closing costs to be paid by the seller and it weakens their negotiating position. There are loan options that could require little to no down payment. So the money you have saved for the 5% down, you can use it for closing costs instead!
The key is to find an agent that is willing and able to show you the new listings as soon as you are available! I have been working with a couple of buyers for weeks and every new listing that has come on the market has sold in the first few hours and we didn't get to see it due to the buyers' work schedules. Buyers are being aggressive, working around their schedules, going to look over their lunch, or taking a half day off from work to see properties during the day.
I would love to show you all the ways that we can get you the home that meets your needs! Call me today for a free home buyer consultation at 319-521-0701.