Buyer Tips and Tricks for a Hot Market

homebuyer standing at the front door of a house with a doormat with the word Home written on it
  1. Have an up to date preapproval letter from a local lender, stating that your credit, income and assets have all been verified. In other words, the lender has seen your tax returns/bank statements/pay stubs, not relied on your verbal information. * WE WILL BE GLAD TO SHARE OUR PREFERRED LENDER LIST!
  2. Note: if you are making a cash offer, have current Proof of funds – name on contract needs to match the name on the account)
  3. Do not assume that you will get a chance to make a higher or better offer. Make a Very Good Offer to Start With. If You Want This Property, Your Offer Needs to Reflect That!
  4. If you are making an offer OVER list price, then make it for an “uneven” amount – for example, , instead of an offer for $305,000, make it for $305,300.
  5. Have your agent call the Listing Agent and find out what is most important to the seller: the closing date, the price, or the terms….or something else.
  6. Make as much of an Escrow Deposit as possible.
  7. Offer to pay title insurance.
  8. Be Flexible with your closing date. Consider allowing the seller a few days after closing to give up possession of the house.
  9. Keep the inspection period VERY SHORT, no more than 7 days.
  10. Consider including an Appraisal Gap Addendum, which allows for the appraisal to come in less than the sales price. You must be able to cover this gap in both cash and financing. Keep in mind this could change your loan to value (e.g. 80%) and then require that you have to pay private mortgage insurance on a monthly basis. *this is not an option for FHA/VA*
  11. Consider an Escalation Clause addendum, whereby you agree to come up $XXX amount, up to a certain price point, over what the best other offer is. (When you use an escalation clause, you can make an offer at list price.)

We Will Help You Structure Your Offer the Best We Can!

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Kathy Damewood, P.A. is associated with RE/MAX Alliance Group