ALL THE WAY HOME

by Liz Young

The 4 Things Home Buyers Need To Know In The Current Real Estate Market

Hi real estate friends! Let’s talk about the 4 things every buyer should know in this highly competitive seller’s market. 

1. Get your financing in order. Speak to a couple of lenders, (I am happy to send you some names) get pre approved and talk through the different types of financing. In this competitive market, a conventional loan is typically going to be the best option because home buyers are often competing with cash offers.  While FHA, VA and other loan products exist, the seller is often looking for the cleanest offer with the fewest stipulations to sign with so that everyone can get to the closing table as soon as possible.
2. Don payments matter.  While a home buyer can get approved for a loan with a 3% - 5% down payment, many sellers in this competitive environment are going under contract with a buyer who can afford to put 10%, 20%, or even more down. A larger down payment really helps to make your offer stronger and if the house doesn’t appraise which does happen on a regular basis in this market, the buyer can work with their lender to rework the loan, possibly paying PMI (private mortgage insurance) so that they can still buy the house.  With a smaller down payment, there is less wiggle room if the house doesn't appraise so many sellers accept an offer from a buyer who has more funds to bring to closing. 
3. Be prepared to make a quick, strong offer. This isn’t the time where we start with a low offer and negotiate back and forth until we reach an agreement. I recommend that a buyer present their best offer from the start. If we can let the seller know that the buyer has additional funds to bring to closing if the house doesn’t appraise by using an Appraisal Addendum, that makes the offer stronger as well.
4. Be flexible on some of the lesser terms. These terms could include the closing date or whether the washer/dryer remains in the home. If the sellers have a particular day they would like to close or want to take their refrigerator and washer/dryer with them, the buyer should consider allowing the seller to stipulate what works best for them.

Although it is a challenging market for home buyers, I am having a lot of great success getting my buyers’ offers accepted. Reach out with any questions on how to navigate this market at liz@lizyoungrealtor.com or  (704) 578-9513. Bye for now!

June 14, 2021