The housing market has improved and homebuyers have to be aware that the chance of a bidding war is out there. Do you know how to give yourself the best way to win that bidding war? Here are a few things that should put your offer at the top of pile.
First thing you should do as a homebuyer, is make sure you have your financing in place before you start your house search. Find the lender you wish to use, apply and do everything the lender requires in order to give you a preapproval letter. Have it in hand before submitting an offer.
Keep a folder with current pay stubs, bank statements and all of the paperwork they will need to process it once you do have the pre approval. In some places, it’s common to accompany your offer with a financial information sheet detailing your job history, salary and bonuses, 401(k) balance, how much you have for a down payment, and where the down payment money is. Show the seller that you are serious and able to purchase their home, and you will win the war.
Next, make a fair offer. In a seller’s market, that means make a full price offer. If there have been other offers made, consider an above asking offer. Also make sure you have a higher than average deposit.
Another good idea is to keep the amount and type of conditions out of the offer. Things like contingencies for selling your current home, or extended times for financing approval. Some people will say drop the home inspection contingency, but that isn’t a good idea. Instead, read all disclosures and ask if the sellers have had a home inspection prior to listing the home.
If that is acceptable, you can still have your own inspection in order to provide information on the home’s condition. You can also have an inspection done prior to making an offer, or bring one along with you when you tour the home, and if they feel it is acceptable then make a non-contingent offer. If you do this you should have a home inspector ready almost the day the home goes on the market.
Being prepared will get you the home you want. Be prepared!