Real estate markets are always hot, sometimes for buyers and sometimes for sellers. If you want to buy a home for the first time, try to wait for the buyer’s hot market, when prices of homes will be little, and there will be no competition. You will be able to get the house of your choice, at a low price. But, if the market is competitive, you need to make aggressive offers to get the house of your choice. It’s necessary to make aggressive offers when you are buying a house on mortgage and buyers will cash are already available in the market. Seller will prefer the buyer who will be ready to pay the money. But, if you will make some aggressive moves, you will be able to get the home even in the presence of all cash buyers. Here are our tips, for the first time home buyers.
1. Preapproval Letter
Once you have decided your lender, by taking offers from different lending agencies, you can ask for the preapproval letter. The lender, which is a bank in most of the cases, will confirm your income and prove that how many loans you can take. The bank will decide this, by your previous credit history, your source of revenue and other property, if you have any. Other than this pre-qualified letter, you can also ask the lender to give you pre approval for a particular purchase. If you have that preapproval letter, you will have the advantage over the other buyers. In this case, you will be able to proceed quickly, when you find the home of your choice and sellers always want quick processing.
2. Offer Financial Benefits
If you find yourself in the situation, when other offers are also present for the seller, you can offer him other financial benefits too. For instance, you can offer him to increase the bid, if he finds other buyers, which offer more than your bid. Usually, buyers offer 1% more. You can also offer relation to the buyer on a closing date. Similarly, anything which seems appropriate to you and will be of some benefit to the seller will be attractive for the seller, and he might prefer you. Make sure you discuss your options with a local realtor that knows the market in your general area.
3. Avoid Making Demands
In multiple bid situations, sellers have more choices, and they prefer a clean deal. Make sure that there are not too many conditions and clause, which are annoying for the seller. Otherwise, the sellers can easily ignore your bid and go for the other buyer who is not making as many demands as you’re.
4. Look into Quick Contingency
Major haul in the property dealing is based on contingencies, the longer the contingency is kept the annoyed seller would get. Therefore one must make the inspection process a quicker one, this never means that you should not inspect properly, but the proper inspection must be made as quickly as possible rather than wasting time. This will help the deal take final place quickly which is a must. Other than this you can even take an inspection tour before bidding as this will also save time and will be healthy for dealing.
5. Quick Payment System
The quicker your payment system will be, the more it will help you convince the seller. For this purpose, you need to go for pre-approved pricing as it is considered one of the best and quick methods when a buyer initiates a bid in a minimum possible time. It will convince the buyer that the buyer’s payment system is pretty quick and there’s no need to worry about the payment after the bidding process. No seller will be willing to offer his/her real estate property to a buyer who has late payment issues and often offers lame excuses covering it up.
6. Flexible Timing
Cooperate with the seller, if he needs time. A little wait can get you the desired home. Sometimes sellers have no place to move, and they want some time to move to a new place. In this situation, all cash buyers do not usually wait, as they feel that when they are offering all the money at once, the house should be vacant, soon. You can take the advantage of this situation, and get the house, if you are willing to wait. Moreover, the loan commitment time is usually 30 to 45 days, but the seller will be happy if you reduce this time to 10 to 15 days. If you have already taken your lender in confidence, you can make such offer to the seller.
7. Be Nice to the Seller
Sometimes in a multi bid situation, personality and attitude of the buyer is the deciding factor. If you ensure the seller that you actually like his home and you create a friendly relation with the seller, he will be more comfortable selling this house to you. Moreover, if your attitude is professional, the seller will be forced to trust you. Try not to be aggressive; rather a polite and professional buyer will always be preferred.
8. A Reliable Realtor
Home buying is not an easy business, especially for the first time buyers. If you have a reliable realtor, he is dealing with these things every day. He can guide you better. You will not be able to write a strong offer letter for the first time, so it’s better to ask for the services of a realtor. He can guide you step by step and with better planning and proper strategies, you can get your first home without any problem.
Buying a home for the first time is not an easy job. You need to consider lots of factors and the first time; you have no idea about many of these. Keep your approach positive and get a reliable and experienced realtor, who can make things easy for you. Who can guide you properly during the process? Sometimes it’s not necessary to make aggressive offers, but sometimes you need to made, depending on the situation. But, you have to draw the limit, aggressive offers should be made in such away, that they don’t harm your financial situation. It’s important to know your priorities.