Tired of getting beat out on your offer to purchase a house by an investor or other buyers? The market has drastically shifted, I built my real estate business by being considered as the go-to Realtor in the valley when buyers were getting tired of getting beat out by other contracts. Remember these great homes are always the fastest homes to sell regardless of whether it's a buyers or seller's market...
1. Educate yourself on the market condition- Obviously I am biased but a great Realtor will be super helpful in the process. You need and want someone who is in the trenches day in and day out that will be able to spot an opportunity and help you move quickly. I see a lot of buyers come into my office who have recently attended an investor seminar or read an investor book and the advice is usually impractical because of the market conditions and they end up just spinning their wheels without being able to get anything accepted.
2. Offer above list price- The days of submitting a low ball offer left when the inventory of homes went from 43,000 active homes to 15,000 homes in less than 2 years. If you're serious about buying a home you can't even consider offering a below-listed price unless the home is seriously overpriced. You need to be prepared to submit an offer that is your highest and best, from the initial stages because if you don't you won't even be in a position to get a counter from the seller. Remember if you're using the Arizona Residential Real Estate Contract you have a built-in contingency regarding the appraisal. In layman terms, it protects the buyer from overpaying on a home. If the appraisal comes in below the agreed purchase price 3 things can happen:
A-The buyer(you) can cancel the purchase contract and get your earnest money refunded.
B. -The seller can also cancel the purchase offer and again you will get your earnest money refunded. C. My favorite option the buyer and seller agree to meet somewhere in the middle, remember that if you're purchasing the home using FHA financing that appraisal will stay with the home for 6 months. So the seller knows that he won't be able to sell the home for a higher price unless it's sold to a cash buyer because of the appraisal.
3. Write an emotional letter stating why you love the sellers home and attach it to your offer- This tactic has been used by my self and my buyer agents with amazing results. This will obviously not help if there is a cash buyer but when your dealing with multiple offers and all similar this will give you a much-needed advantage against the other offers.
4. Offer substantial earnest money- For the sake of using an example, we will assume you're using an FHA loan because this is the majority of buyers use this financing. The fear for so many buyers is the risk of losing their earnest money so they don't like to offer a substantial amount. The earnest money using the Arizona Contract your earnest money is protected in many different ways, which include a financing contingency, appraisal contingency, inspection period, homeowner association approval of the CC&R. We recommended a lot of our clients to offer the down payment that will be required upfront as the earnest money.
For example:
$250,000.00 Purchase price
$8,750.00 Down payment using FHA financing 3.5 percent of the sales price
$241,250.00 Amount to be financed
$8,750 This would also be the recommended earnest money to help our buyers get their offer accepted.
5. Shorten your inspection period-The Arizona real estate contract has by default 10 days for the home inspection to be completed. During this time the buyer can cancel for whatever reason and get their earnest money refunded. Obviously this is a concern for the seller and listing agent because if they accept someone offer they can cancel after 10 days and will have to put it back on the market. For you the buyer there isn't any reason why you need the 10 days any inspector can go within a few day notices. So if you reduce the inspection period this will reassure the seller that if you do cancel he or she can put it back on the market asap to find another buyer.
Remember you need to make your offer stand out and be different most Realtor's fail their buyers in helping their offer stand out. I've said one thousand times but I do believe this "The Agent You Select Really Does Matter"
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