4 Tips to Navigating a Seller’s Real Estate Market
Buying a new home can be a daunting task for many, especially if it’s your first. These days, people are in what’s called a “seller’s market,” which basically means there are less homes than people looking for homes. Because of this, sellers tend to be very discerning when it comes to who purchases their home. Here are a few tips to help you stand out from the rest of the buyers:
Pre-Approval Letter and More
The first thing you should do is find a reputable Ewa beach mortgage broker and set an appointment to talk to them about wanting to purchase a home. They will then check your credit and ask for some needed information from you. Afterward, they will provide you a pre-qualification letter that you can show to sellers to prove that you are serious about buying a home.
While a pre-qualification letter is good, you should also provide your W-2s, pay stubs, and past taxes to your broker. This will give your lender a better view of what you can and can’t afford and give you a pre-approval letter. This letter is much more definitive in showing that you are capable of buying a home than a pre-qualification letter.
Prepare a Competitive Cash Deposit
In America, over 35% of buyers are purchasing homes with cash. Competing against these buyers is very difficult but having a large initial cash deposit is one way to do it. By giving a large initial cash deposit, you show that you are willing to compete with the cash buyer, and you give the seller incentive to select you over them. You may even want to put in an additional deposit of cash after the home inspection period.
Reduce Contingencies
Your seller has to deal with a lot of expenses called “contingencies'' during the buying process. Contingencies are basically points in which the buyer can cancel the contract during escrow. Some contingencies include termite inspection, survey, HOA documents, professional cleaning, 60% of escrow and closing fees, etc.
Why are we discussing what the seller has to pay? Well, to put it simply, if you reduce these things the seller has to pay, they’re more likely to select you as the buyer. If you remove even one contingency, by doing something like paying for termite inspection yourself, you increase the likelihood that the seller selects you.
Put Your Best Foot Forward
Specifically, this means you should put your highest offer first instead of slowly ramping up. This is because, since there are a lot of buyers in the market, a seller can often just ignore offers that are too low for them and never even reply or counteroffer. If you really want a house, you can even put an escalation clause to show that you are a serious buyer.
An escalation clause allows you to make your suggested purchase price higher if you think you are being outbid.
Mortgage Broker in Ewa Beach: HI Velocity Mortgage
With this seller’s market, you need to adapt to get the house you want. These few tips above are just the tip of the iceberg. You may need to do additional research to succeed in looking for a new home. Speak with local professionals and ask for their advice, too. Happy house hunting!
Are you looking for amortgage broker in Ewa Beach? Drop HI Velocity Mortgage a line today! We are a mortgage broker dedicated to helping our clients through the home buying and home lending process. Call us through (808) 727-1055!