Real Estate: Make These Moves in a Tight Market

Frustrated as a buyer due to constant bidding wars? Not able to buy the house or worse house(s) you
want due to a plethora of buyer activity, competing offers and shortage of inventory? Feeling exhausted,
worn down and hopeless?

Supply of homes in many areas and price points are at historic lows. That coupled with historically low interest rates have provided sellers with the perfect storm and buyers with frustration fatigue. Here are some good tips to win the house of your dreams and put you ahead of the pack!

1-Cash is King: if you can pay cash- Do it! You can refinance after if you want. Buyers who require
financing have a mortgage contingency in their contract allowing typically 45 days for a mortgage
approval. With a cash sale, sellers don’t have to worry about this contingency.

2-Strengthen your Financing: If you are going for a mortgage go beyond your typical pre-approval and
get a bank commitment subject to a home being identified and qualified. This means that you have
submitted your full mortgage application complete with proof of income, assets and credit history.

3-Shore up your Preapproval: Any good listing agent should be verifying with the prospective buyer’s
bank the credentials behind a pre-approval. Not all pre-approvals are alike. At a minimum, a pre-
approval should be issued with the lender reviewing documented proof of income, assets and credit

4-Move Quickly: Don’t hesitate submitting your offer even if you know the sellers won’t be making a
decision until after the weekend or open house, etc. Often times the early bird does get the worm as it
shows sellers your motivation to step up to the plate.

5-Make Yourself Stand Out: If you know it’s a great house and therefore going to have huge demand,make your mark by putting in your best offer (price and terms) from the get go. You can’t assume that the seller is going to go back for a second round of highest and best.

6-Increase your Down payment on Contract: Even though your contract may be subject to a mortgage
and if you don’t get approved your contract deposit is returned, increasing your down payment is a
psychological boost to sellers to show your commitment to the purchase.

7-Waive contingencies: If you are extremely confident that you can get your mortgage and can tolerate
the associated risk, waive the mortgage contingency from the contract, eliminating the risk from the
seller’s viewpoint. Similarly, if the home visually looks to be well maintained and updated and you are
confident in your assessment, you can waive the house inspection and go directly into contract. In both
cases of waiving contingencies you as the buyer are taking risks which you have to be comfortable with.

8-Move Fast and Stay Focused: Schedule an inspection promptly without delay and don’t nick pick. Focus only on health and safety issues during the inspection. Remember the seller has back up offers
and can quickly move to them if they feel you are too demanding.

9-Be Flexible: Providing the seller with their desired closing timeframe can be a winning ticket;
eliminating the hassle of a double move and related increased costs. Accommodating the seller’s
timeframe is often a major component of a seller’s decision. Sometimes convenience trumps dollars.

10- Without violating Fair Housing Laws, let the seller know how much you love the house, its features,
and the neighborhood, and why you think it’s the right house for you. A note attached to your offer may strike a chord on the seller’s emotional side. If you are buying the home from an investor (flip), don’t
bother- it’s all about the dollars.

Lastly, if you are hesitant in overpaying but want to let the seller know you can pay more than the
written offer, put in an escalation clause in your written offer which says you are willing to pay x amount
of dollars over the highest offer up to a stated amount. You need to be disciplined in knowing the
maximum you will pay and you need to have your preapproval or proof of cash to substantiate it.

Patricia J. Bretone
Associate R. E. Broker, CBR
Sterling Circle of Accomplishment
Business Development Team
Relocation Specialist, Certified Buyer Broker,Short Sale Specialist
Accredited Professional Real Estate Stager
Daniel Gale Sotheby’s International
187 Park Avenue
Huntington, N.Y. 11743
Office (631) 427-6600 x 0126
Cell (917) 270-3715

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