Are you sick of loosing house after house in this crazy market where multiple offers and escalation clauses are standard?
American Classic Homes has some tips so you finally get the home of your dreams.
- Think and Plan Ahead. Plan your path to a home purchase at least six months in advance. Make sure to avoid purchasing expensive items that require financing. Consider buying a new big screen, car, or other purchase that requires financing after your home purchase. You may also want to try and pay off some debt that you have. By reducing the amount of debt you have, you may be able to pre-qualify for a higher loan amount.Get Pre-Qualified. Going off the previous suggestion, it is important to get pre-qualified for a loan early. Getting pre-qualified shows that 1) You are a serious buyer, and 2)That you can afford the house you are submitting an offer on. With a pre-qualification, sellers will know you are not just wasting their time. Also, most buyers are already pre-qualified, so if you aren’t, you are behind in the game.
- Be Reasonable. Know how much home you can afford. Don’t go out of your comfort zone just to get the home of your dreams. Set a realistic max budget you are willing to spend for a home, and don’t go a penny over. Also remember, that in fast paced markets such as this one, homes usually don’t sell for much less than their asking price. If most homes in the area are selling for 100% of the asking price, don’t assume that you will be able to pick up a house for 90% of the asking price. Sometimes homes that sit on the market for a very long time will sell for much less than asking price, but that’s because they were overpriced to begin with.
- Limit Contingencies. In this crazy market, many buyers are waiving all contingencies, which is quite frankly crazy. A reasonable amount of standard contingencies such as a financing contingency and an inspection contingency is generally fine. Many buyers are now doing pre-inspections (with the approval of the sellers) on homes before purchasing them, so they limit the amount of contingencies. In this competitive market, many buyers are also paying with cash and eliminating financing contingencies. Having contingencies such as having to sell your home first may turn many sellers off, as this complicates the sale. On the other hand, offering a contingency in which the seller can rent back the house for some time after close, can help the sale, as sometimes sellers need time to find a new home.
- Cash is King. As stated in the prior section, many buyers are now paying for homes with all cash (especially investors). This means the deal does not require an appraisal, and is much more likely to go through. Eliminating the financing contingency will also speed up the closing process. Many times sellers are willing to take a lower offer that is all cash instead of a higher offer that requires financing. Remember, you can finance your house after you purchase it.
- Make it Personal. Although this idea generally does not apply to sellers that are builders, many individuals can be swayed by a letter with your offer. Some sellers have feelings and memories attached to the homes they are selling, and would prefer their home to go to the perfect person/family. A letter to the seller can explain why you are the perfect individual/family to take care of the property for years to come. Although this step takes some extra time, it can really help you get the deal.
If you’re ready to move up to a brand new home by American Classic Homes, check out our website at AmericanClassicHomes.com for current inventory, or give our listing agent, Thuan Howard, a call at 425.445.3252.