At different times of the year and during peaks in the real estate market, there may be times you are interested in a home that other people want too. If you find yourself in a tight real estate market and want to make your offer stand out from the crowd, there are some ways you can do that. Where should you start if that is the case?
- Start with the obvious…money. Have you heard the saying “Money talks?” That can definitely be the case here. If you have found your dream home or are highly motivated to purchase a home for any reason, show that in the amount you offer. Talk to your real estate agent about the current market value of the home then decide how much more you are willing to offer to make sure it is yours. In some cases, you may get a chance to counter with the seller during a multiple offer situation and sometimes you may not get another chance. Only you can know how much the home is worth to you to make sure it is yours at the end of the day.
- Provide a preapproval letter with your offer. Don’t confuse a preapproval letter with a prequalification letter. One is better than the other. With a preapproval, a lender takes time to verify your information and doesn’t base their determination solely on the information you give them so it will mean more than a prequalification.
- Let the seller know the amount of the down payment you will be making on the home. This can help greatly. No matter what the value of the home you are purchasing, if you are getting a mortgage, the lender will require an appraisal on the property. If the property doesn’t appraise, you may need to have a larger down payment if you still want to purchase the home since the lender is not going to provide a mortgage for mean the home is worth. Because of this a larger down payment will give the seller peace of mind that you will be to move forward with the purchase of the home even if the appraisal comes in lower than the purchase price you previously agreed to.
All of these things can come together to help you walk away with the winning offer and later wind up with the home of your dreams. If you have any questions about the real estate market today or in the future, let me know. I will be happy to answer any questions you may have about the home buying process, help you to find your dream home or determine the value of your existing property.
Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.