Buyers - Be Prepared!

There is no more frustrating position to be in at this time than as a buyer of residential real estate. Listings are few, buyers are many, and notice of new listings is instantaneous. The competition is fierce.

What can you do to put yourself in the best position to win out in a bidding war?

First, if you need financing, get that lined up as soon as possible. Your bank can approve YOU ahead of time for a certain amount, and then when you find the right house they will go through the process of approving the house. You are halfway there by getting approved yourself and having a pre-approval letter to share with sellers.   

Second, if you are paying cash - and you are the fortunate ones in this market - make sure the cash is somewhere accessible, and be prepared to share “proof of funds” with the seller. That proof can be as simple as a statement from the savings account or brokerage account where the cash currently sits, or a letter from your banker stating that you have the funds to cover the purchase price.

Swan Broker Gail Caruso listed the charming house seen above, and within 3 days had over 30 showings and 14 offers. This amount of competition is real, just not on TV or the nightly news.

You may ask your broker to include a letter to the sellers with your offer stating why you want to purchase their house and how much you love it, etc. Some states though are looking at these “love letters to the seller,” and questioning whether they may violate Fair Housing standards by putting the seller in a position to have knowledge that may lead them to unknowingly discriminate against other buyers who have made offers.

In the end, get qualified, make your offer as clean as possible by limiting your contingencies, and be prepared to move the moment your broker calls you with a lead.