The Fort Collins Area right now has certain price points that are very competitive. It can be extremely disheartening to lose in a situation where your dream home is on the line. Here are some tips to help you compete:
1. Get a market analysis from your agent on the property and know what you're up against. When looking at the analysis don't assume the average holds true for every property. If your property has more amenities, square feet, a bigger lot, or higher end finishes you may not be competitive going with the average on your offer. You may have to go towards the higher end of the comparables. Also, keep in mind that if you're doing a loan, especially an FHA, VA or USDA loan...the property does have to appraise. If it doesn't you're left renegotiating with the seller, paying the difference in cash or having to walk away. Sometimes it's better not to get in a situation where you're overpaying for the property...which is where understanding the market up front can be very important.
2. Understanding closing costs. Many times you can ask the seller to help pay for your closing costs. These come out of the seller's net proceeds, so if you do a full price offer but ask for closing costs...you're not really offering full price. If you're in a competitive situation you have several options to combat this. You can either not ask for them to pay them...and bring the money yourself. Or you can offer more to cover the closing costs.
3. Make the offer as clean as you can. Asking for the seller to repaint the deck, or include the stereo system in the basement, might make them lean towards another offer.
4. Ask the seller what close date they would prefer. You'd be surprised by how often agents don't ask this and how much better it can make your offer.
5. Get pre-approved instead of pre-qualified. If you submit a pre-approval letter with your offer instead of a pre-qualification letter, you look like a stronger candidate.
6. Write a letter. Writing a letter to the seller to be included with your offer is a powerful way to beat out competing offers. Make it heartfelt and sincere about how much this home would mean and how you sincerely appreciate their consideration.
7. Waive some of your contingencies. While I don't always recommend this (more of a case by case basis) there are a lot of deadlines in the contract that allow the buyer to get out of the contract if, let's say, it doesn't appraise. By waiving these (or some of them) you're showing you're very serious about moving forward. Agreeing to take the property "as-is" for instance and waiving your inspection contingency.
8. Jump on opportunities. When you're in a competitive market...the early bird gets the worm. Get in offers quick, with short acceptance deadlines to try and beat the rest of the rush to the punch.
9. Know what you want ahead of time. It can feel like too much pressure to go in high and quick on properties in a competitive market. There's nothing worse than feeling pressured and out of control or unsure in the home buying process. If homes are going quickly put together your "needs" and "wants" list ahead of time. Tour neighborhoods and areas to know what you like and don't like before you're out in the battle zone having to make big decisions.
10. Never tour just one property unless you've been out repeatedly and really have a good idea of what's available. You don't want to lose the best deal on the market because you've only seen one and you don't have anything to compare it to.
It can be extremely stressful to buy in a competitive market. By being prepared up front, you'll cut your stress level in half and also put yourself in a much better position to get the best deal.
Author:Sarah Rowan Phone: 970-397-5774 Dated: July 21st 2014 Views: 217 About Sarah: Sarah was a licensed real estate agent for 10 years before transitioning into the mortgage industry ...
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Interest rates are at 7 month lows!!!That's a conversation no one
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