Monday, April 13, 2015

Bidding Wars here again? How do we get our Offer accepted?

In the market to buy a home? Many more people are currently in the market to buy homes. Here in Florida the market is hot. Not only are we seeing more and more buyers from the North, more local home owners have equity in their homes and are contemplating a change of home.

What can buyers do to have their offer accepted?

Cash

As always cash is king, but not every buyer has cash and many who do would like to leverage the cash for other investments so that is an option but one of a few.

Pre-Approval as opposed to Pre-Qualified

This is a more painstaking process but by getting pre-approved you will have supplied your lender with much more exhaustive paper work and the Realtor should be able to explain this to the seller's agent and move your offer to a higher position in the pile.

Clean Ideally Type Written Offers

A clean complete offer looks more professional. Your Realtor should have the ability nowadays to sign the offer electronically.


Contingencies

Sale of Existing Home Contingency

Keep contingencies to a minimum. If you want to even suggest a sale contingency then your home
should at a minimum be on the market, priced to sell at the time you make an offer. Less or no inspections is great. Consider 2 day time line.

Inspection Contingencies

These can be shortened, but make sure you have an inspector lined up and ready to inspect. Miss the deadline and the seller will have no need to repair or compensate you. There are different contracts out there some which favor buyers and others sellers. Make sure that you discuss your options with your Realtor and have them explain the nuances of the contracts to you.  The LR Group will work with you and explain the different options open to you. 407-593-8234 Direct.

Appraisal Contingency

Buying with a Mortgage?

This is usually part of the mortgage process.
Cash buyers may want to pay asking if they are comfortable with the price and property

Quick Closings

If you are prepared to move quickly this will make your offer attractive to sellers. However
check if they may want to move later. Sometimes families with children don't want to move during the school year. These sellers may want to stay in the home for longer so a delayed closing date may be more attractive for these sellers.

I never recommend my buyer becomes a landlord. We at the LR Group are not fans of sellers staying in the home after closing. There are liability issues here and not everyone wants to become a landlord.

Large Deposits and Down Payments / Increase your Earnest Money

Money talks and the more skin a buyer has in the game the more trust that the seller has the buyer is serious and will close. In these situations make sure that you are aware of your timelines and that the agent you are working is too. At The L R Group we work with buyers who make large deposits and
we do our utmost to ensure that all time lines and stipulations are met.

A deposit/Earnest Money of $1,000 might have been OK a few years back. Now consider putting down as much as you can seriously afford. $5,000 non refundable earnest money looks much stronger. Consider upping the Earnest Money as the inspections and contingencies fall off.


Write a Letter

Explain to the seller why you would be the perfect fit for a given home. If you are dealing with a company it probably won't work, but some times someone has a lot of memories and happy times lived in a specific home and these buyers might prefer to know that you aren't going to tear out the yard or the gorgeous kitchen the owner is so proud of. In multiple offer situations it isn't time to be lazy and give up, rather time to be creative and proactive.

Work with Agents who are experienced and care. Interview your agent and ask them what they do and how they will support you. Show your agent loyalty and that you are working with them until the home purchase is completed.

Seller is  always interested in the Net Proceeds

Escalation Clauses

Be prepared to pay more and be the highest bidder. Ask me for details.




The L R Group
Premium Properties Real Estate Services
www.homesinlakenona.com

Tel: 407-593-8234













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