Here are buyers’ dos and don’ts for preparing for bidding wars.
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In this time of bidding wars, multiple offers, and everything moving so quickly, make sure you’re doing the right things when submitting your offer as a buyer. Here are three dos and two don’ts to keep in mind:
Dos
1. Get pre-approved. I always tell my clients we need to bypass the pre-qualification and go straight to pre-approval. You’ll go into underwriting with your lender, which means they’ll get all the information and qualify you for a loan. They’ll ensure all your forms are done, your income checks out, and everything is verified. Underwriters go through steps the federal government requires for a loan, so the sellers will know that you will be able to close on the home.
2. Make a strong offer. Make sure you’re putting as much money down as you can; the more money down, the stronger you appear. There are a few ways to do this, but one way is to put down more earnest money. An experienced real estate agent can guide you on this, but generally, the earnest money is 1% to 3%, but if you can put down double or four times that amount, your purchase is almost guaranteed, as long as your agent doesn’t remove any contingencies. Put down as much money as you can to help cover all of your closing costs, escrow fees, etc. The seller will take notice if you’re putting down more money than any other offer.
3. Take note of the condition when considering buying as is. When you’re walking through the house, take notes on the eaves, woodwork, plumbing, furnace, air conditioner, and roof, and write down questions to ask the selling agent. Make sure all the maintenance has been updated. These are things you should know about before going under contract. If you decide to buy as is, you’ll know what may need to be repaired. Often, it’s just something small, but if you’re not paying attention, there could be a large expense you’ll be required to pay for after you close.
Dos
1. Get pre-approved. I always tell my clients we need to bypass the pre-qualification and go straight to pre-approval. You’ll go into underwriting with your lender, which means they’ll get all the information and qualify you for a loan. They’ll ensure all your forms are done, your income checks out, and everything is verified. Underwriters go through steps the federal government requires for a loan, so the sellers will know that you will be able to close on the home.
2. Make a strong offer. Make sure you’re putting as much money down as you can; the more money down, the stronger you appear. There are a few ways to do this, but one way is to put down more earnest money. An experienced real estate agent can guide you on this, but generally, the earnest money is 1% to 3%, but if you can put down double or four times that amount, your purchase is almost guaranteed, as long as your agent doesn’t remove any contingencies. Put down as much money as you can to help cover all of your closing costs, escrow fees, etc. The seller will take notice if you’re putting down more money than any other offer.
3. Take note of the condition when considering buying as is. When you’re walking through the house, take notes on the eaves, woodwork, plumbing, furnace, air conditioner, and roof, and write down questions to ask the selling agent. Make sure all the maintenance has been updated. These are things you should know about before going under contract. If you decide to buy as is, you’ll know what may need to be repaired. Often, it’s just something small, but if you’re not paying attention, there could be a large expense you’ll be required to pay for after you close.
" Bypass the pre-qualification and go straight to pre-approval."
Don'ts
1. Don’t eliminate the inspection. I would never buy a house without a home inspection, even if it looks great. Make sure it’s done by a qualified inspector who will give you the report in a timely manner so you know exactly what needs to be done when you buy the house.
2. Don’t remove your financial contingencies. If you’re buying with a loan, you have to get an appraisal and get the loan approved. If you remove the loan contingency, you could have huge issues when it’s time to close.
If you have any questions or comments about these points or real estate in general, feel free to leave them below or call, text, or email me. I would love to help you.
1. Don’t eliminate the inspection. I would never buy a house without a home inspection, even if it looks great. Make sure it’s done by a qualified inspector who will give you the report in a timely manner so you know exactly what needs to be done when you buy the house.
2. Don’t remove your financial contingencies. If you’re buying with a loan, you have to get an appraisal and get the loan approved. If you remove the loan contingency, you could have huge issues when it’s time to close.
If you have any questions or comments about these points or real estate in general, feel free to leave them below or call, text, or email me. I would love to help you.
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