"How could anything be so humanly impossible??"......
Hearing a client utter those words was as crushing as a crystal wine glass landing on a wooden floor. It hurt. I felt the pain and anguish that resounded in her frustrated voice.
She was crushed and so was I.
We were just notified that we'd lost out on another home to a different purchaser. This was the 8th offer we'd made and the 8th rejection we'd received (with no wine in sight). The market in which she was looking had become SUPER competitive (especially in her price range of $100,000) and we were constantly finding ourselves fighting against other owner occupant purchasers AND cash investors.
Her situation wasn't unusal for the Metro Atlanta real estate market, especially first time home buyers. In fact, this occurred several years ago and many buyers continue to face the same challenges today. With rental prices increasing at nearly the same rate as our home prices, some purchasers are faced with the reality of being priced out of both markets. One thing's for certain, time is of the essence and critical strategies are required to ensure that your offer is more appealing than others.
Some strategies include:
- Opt for the Right To Request Repairs in lieu of a Due Diligence period. Since the Due Diligence period is a "catch all" time frame for the buyer to change their mind, eliminating it provides the notion that the buyer is serious about purchasing the property and has no intention of pulling out. Including a right to request repairs provides the buyer with the right to negotiate repairs and terminate in the event that repair negotiations fall apart.
- Obtain conditional loan approval prior to beginning your search. The conditional loan approval trumps a loan pre-approval or pre-qualification every time! Your conditional loan approval tells the seller that your loan file has been reviewed by an underwriter and has met their lending qualifications. The strength of the conditional loan approval carries more weight than a loan pre-approval or pre-qualification letter.
- Fund your own closing costs. This option is actually a no-brainer. Eliminating seller paid closing costs will net a higher profit for the seller. In many instances, money talks.
- Consider new construction. Many national builders are offering home communities that are geared towards the first time purchaser. Many are also still offering incentives for closing costs assistance and/or home upgrades. The only drawback with new construction may be having to wait for the home to be built. However, you'll have the ability to secure the price of the home at the time of contract and not be subjected to any future price increases. So, if your timing permits, it could be a viable option!
Fortunately, the opportunity to marry the right buyer to the right home still exists AND it could work for you! If you're looking for someone to assist you in navigating through the home buying process, give us a call! Good luck and Happy House Hunting!