Potential homebuyers are doing whatever they can to buy a home in this volatile market. This purchase season isn’t like any other – given circumstance of the pandemic. Therefore, not too many people are keen on selling their homes. In fact, most people are playing it safe as job security is not certain along with the housing market.
However, there’s a still a bunch of sellers that are putting their homes on the market. The challenge is spotting the home that you desire and bidding on it fast enough before it’s taken off the listing page.
If you brothers are looking to buy a home this year (and you have your pre-approval), I’m going to provide 5 simple tips that will help you buy the house you want when the market is volatile.
1. Do Not Wait to Bid!!
If you find a house that you’re potentially interested in, DO NOT WAIT TO BID! Even if you’re not 100% sure, you still want to keep your options open. The worst thing that could happen is you going back and forth between several options and once a house is selected, it has already gone off the market.
2. Offer More Than The Asking Price
This will automatically separate your offer from the others. Typically, people will only bid the asking price as their budget does not allow them go any more than what the seller is asking for. Even going $10,000 over asking price will put you in the top contention for your offer being selected.
3. Provide a Large Earnest Money Deposit
The Earnest Money Deposit, or the EMD, is a financial transaction where the buyer will put down a small down payment to show the seller that you’re serious about buying the home. And yes, the money will go towards the down payment. If you plan on bidding on a house, a $1,000 EMD deposit is typical, but increasing that amount would get the seller’s attention and would help sway the seller’s mind if there’s a close race between offers.
4. Only Counter an Offer Once, Maybe Twice
The seller may have interest in your offer, but wants to negotiate a few details. Being as accommodating as possible will provide minimal conflict between you and the seller. If you’re going to counter the seller’s counteroffer, it’s best to only do it once. Stressing out the seller will cause them to back down and find another offer that’s simpler.
5. Offer Occupancy After Closing
As much as you want that house, the seller’s still need time to pack their belongings and move. One way to keep your offer more unique than the rest is to offer 21 days of occupancy after closing. Therefore, the borrower has 3 additional weeks to figure out their moving plan. I say additional because I’m counting the days prior to closing, which is about 30 days on average.
These simple tips will help you in this market if you’re really trying to purchase a home this year. Understand that many people are eyeing the same homes that you are. Your offers must stand out from the rest, especially as homes are going off the market in less than 72 hours!
If you have any questions about buying a home, feel free to send me an email, firstname.lastname@example.org. I’ve been in the mortgage industry for 5 years and would love to help brothers find the right home!