Your Exceptional Life

These are rocky times in the real estate world. We’re seeing an interesting phenomenon in bank owned properties. Multiple offers and properties getting bid up. What? Yup. I said it. Multiple offers and properties getting bid up. I think this is good for the market. I think it will help establish a bottom so we can start working our way out of this mess.

But what about you? You have been waiting for this market to settle and now you’d like to finally buy your new home. But well prepared investors keep shutting you out. How do you get your home?

There’s several components to a successful offer. First and foremost, have your ducks in a row. Every selling lender will require a copy of your preapproval. Have it ready. Have copies available. Every selling lender will also require 1-3% earnest money deposit. Have it ready to go. (Of course, you never go over 3%. That’s the liquidated damages amount) And be ready to write. A very nice couple I was working with lost out on the perfect house for their family because they didn’t have their preapproval in order. They are a big family needing at least a 4/2. Those don’t come on very often as bank owned. I had one, in their school district.  They missed it scrambling to get their loan in order. That’s not where you want to be.  Step One, get your money/preapproval in order.

The next component is a strong offer. Selling lenders like to see strong offers. A good deposit, a good preapproval from a reputable lender indicates commitment. A good increased down is very attractive to them. That indicates that the loan is not in danger of being “disappeared”.

And finally, make it a quick close. Very rarely will they take an offer contingent on you selling your house. In this market, unless there is room to mark your house down, it may labor out on the market for months. Be ready to go in 30 days. They like that. Then perform.  You’ll be moving into your dream house in no time.