5 home buying tips to navigate in a Sellers Market
If you have been an active shopper in the Charlotte home market recently, you know that it’s a Seller’s market. Many home buyers are finding themselves in situations where they are up against multiple offers, homes that go under contract in 24 hours (or sooner) and bidding wars where homes sell for well above the list price. As a buyer wannabe homeowner, how do you navigate in a seller’s market? These 5 home buying tips are here to help you graduate from home shopper to homeowner.
Hire a professional Real Agent to guide you through the home buying process – Hiring a buyer’s agent who knows the market that you are interested in purchasing can help you come up with on offer that will be taken seriously. Your agent can determine how “hot” a potential property is and how aggressive you will need to be if there is a bidding war. As a buyer’s agent when my clients are in multiple offers, I will suggest adding an escalation clause as a way to increase the chances of winning the bidding war. This clause lays out how much more buyers are willing to pay over competitive offers.
Pre-approvals letters are a must! Your first step in home purchasing will be to get pre-approved for a mortgage. This will show you how much home you can afford and will show the seller that your finances and credit are in order. Your pre-approval letter will be submitted with your offer to purchase to show the sellers that you are a serious and financially sound buyer.
Be flexible with timing. As a realtor competing for my clients in multiple offers, I will always check with the list agent to ask what the preferred “move out” date is. If my clients can meet that date, I will write this in to my offer to show the seller that we are willing to move as slowly or as quickly as they need thus improving our changes over other offers.
Tug at the heart strings. What were the things that captured your attention as well as your heart to make you fall in love and want to purchase this home? Did you love nature in the backyard and can already picture your bird sanctuary there? Do you kids already have friends in the same neighborhood and are already planning play dates at each other houses? When sellers are facing multiple offers, getting a personal letter from buyers that shows why they love the house or how they plan to use it might help to set the offer apart. Be sure to include a picture of your family if appropriate.
Money Talks. I’m not just talking about your purchase amount for the home, I’m referring to your Due Diligence Fee amount and Earnest Money Deposit. Juice up your offer by providing more money up front in what is called the earnest money deposit and Due Diligence Fee. The Due Diligence Fee is money paid to the seller up front ranging from 1 percent up to 5 percent of the purchase price. As long as the sale closes, the fee goes towards the buyers deposit for the home. If they buyer cancels the sale for any reason the buyer forfeits the Due Diligence fee. Having a large amount in this fee ensures the seller that the buyer is serious about closing on the home. The earnest money is cash provided by the buyer, ranging from 1 percent to up to 5 percent of the purchase price that gets held in escrow until the sale closes. Having these deposits show how committed the buyers is to the sale.