Lon Wright Realtor RE/Max Metro
Buyers are having a hard time this year securing a house. There are a lot of homes being sold with multiple offer, there just is not enough inventory. If you are looking to be a buyer this spring/summer market you have to be prepared. My name is Lon Wright and Im a Realtor with RE/MAX Metro out of Minneapolis, MN. My team has helped many buyers over come this problem, but its not easy. The first thing a buyer has to do is be willing to listing to a real estate professional and be quick and decisive. Below I have out lined a few tips that has helped my buyers gain a competitive edge over the competition. When working with Lon Wright Realtormpls I will get the best possible buying experience, no doubt. Contact me for a free no cost or obligation consultation
1 – Don’t Start Looking Until You Are Fully Pre-Approved
Big mistake buyers can make is starting the process before you are ready. Its so competitive right now some houses are getting 5-10 offers. Make sure you are in a position to make an offer that is fully approved. A strong pre-approval letter will help you in a bidding war. Also you won’t waste your time going after houses you cant get or make offer on. It will only slow the process down and make you frustrated. The excitement of buying a house will slow down if you are not in the right financial position.
2 – Don’t Make Offers on Houses at the Top Of Your Budget
Buyers tend to get hung up on the listing price very quickly. Just because the listing price is $200,000 does not mean thats what house is worth or will sell for. Again this is a different market. If you are approved for a home loan for $200,000 don’t make offer’s on houses that are priced at $200,000, you will get out bid every time!! Make an offer on a house that is priced at $185-190. That way it will give you room to go up on your offer price if their is a bidding war. Now we can compete with other offers. Think about it if 5 other people want the same house you do, its going to sell for more then list price.
3 – Be Ultra Aggressive With the Buying Process
Don’t sit on the fence, get OFF the bleachers. If you truly want to buy a house this buying season you have to be aggressive. There is little time to debate a house and “Think About It”. Those days are done. If a house hits the market see right away, with in hours. Submit offer that day. I have my clients write a hand written letter of their family situation and provide picture of their kids. We make offers with wired numbers like $201,750. Standard practice is to ask seller to pay 3% of your losing costs, we ask for 2.75. We make the inspection contingency period as short as possible, if 10 days is standard we do 8 or 9 days. I always ask my clients if they have enough money to go Conventional financing over FHA. All of these factors hep separate your offer from multiple offer scenario. Make sure your real estate agent is just as aggressive and creative. I owe a lot of my success to relationships I have with other agents, being ultra aggressive negotiating, and being more creative with offer then any one else.
4 – Let the Small Things Go
I know that buying a home is a financial step weather its first time buying a house or getting dream home. Buyers have a tendency to let the small thing kill a deal. Some example I have personally dealt with in my clients. Have a room that fits a christmas tree perfect, don’t make decision on something you will have up for a month. Not the right paint color, paint is one of the easiest things you can change on a house. Light fixtures were ugly, again those can be swapped out in a day. Don’t like the color of the front door, really… Bedroom window doesn’t show sunset, this is your family home not vacation home. The list goes on and on. Point is a lot of things you see as negative can be fixed really easy, if you look past the small items, a lot times the house fits perfect.
5 – Don’t Let a Few Thousand Dollars Kill Your Deal
When buying a house for hundreds of thousands of dollars, a few thousand does not matter as much in the long run. Each thousand you finance cost between $4-6 dollars. If you are negotiating a purchase agreement and you are 5 thousand apart and as a buyer you are hung up on the numbers, we are talking about $25 on your payment. So for $25 are you willing to loose a house? I do my best to get every deal negotiated in my clients favor, but sometime you have to bite the bullet and accept the offer on the table!!
I really hope this article help you this buying season. It will be tough don’t get me wrong, but these tips will help a long way in getting your offer accepted over the competition. As always if you want a free consultation and game plan when buying or selling your home don’t hesitate to give me and my team a call.