Tips for Making Your Offer on a New Home Purchase Stand Out - By Art Wood, LO NMLS #118234

I am sure you have heard - the housing market is on FIRE! There has never been a better time to be a seller than right now. I heard two stats today that I could not believe.

1. There are 47,000 licensed real estate agents in Georgia but there are only 8,000 single family homes listed for sale
2. 36% of U.S. houses are being sold for over list price.

Between lack of inventory and the fact that we are coming off historically low interest rates, being a buyer has been REALLY tough in today’s market. Buyers are having to put in multiple offers with escalation clauses that indicate how high over the asking price the buyer is willing to go. I want to offer up a couple of tips to help you succeed while trying to buy a house in this challenging market.

Pre-qualification vs. pre-approval Most lenders offer pre-qualification letters, which mean they pulled credit reports, and asked you how much money you make and how much money you have. That may have been enough a few years ago, but currently I am having all my prospective buyer clients go completely through the underwriting process so they can get a pre-approval letter that shows the seller your loan won’t have any issues.

Contigencies - If you go the route of getting fully pre-approved, then you can also remove the financing contingency in the offer/contract. There are typically three contingencies built into a contract. Due diligence means you can walk away “just because.” Appraisal contingency means you can walk away if the appraisal comes in lower than the sales price. Financing contingency states that you can walk away if you can’t get financed.

The more of these contingencies you can remove, the more confident the seller is that the transaction will move forward. I also suggest getting the appraisal done during due diligence so that you can remove that contingency as well. In order to do that, you have to be willing to pay for an inspection and appraisal upfront, but you also need to make sure you are dealing with a lender that can get the appraisal done quickly. Consider if you were a seller, you would most likely choose a cash offer first, but after that, you are going to pick the offer with not only the highest price but also the one with the best chance for quick closure.

Finally, my most important suggestion is to deal with an amazing real estate agent whether you are buying or selling. A good agent is worth their weight in gold. They do this for a living and can help you navigate these uncharted waters. As a buyer, it costs you nothing to have an agent working for you, but as a seller, it generally cost you 3% of the purchase price - a small price to pay to avoid making the wrong decisions!
It is always best to negotiate from a position of strength, and I believe these tips will increase your odds of success as you make offers on your dream house in 2021. Good luck out there, and as always, I am here to help!
Art Wood lends in all states, except New York and Vermont.

Art Wood

Area Manager, NMLS# 118234
Art Wood Mortgage Team

Legacy Mortgage Team at Goldwater Bank, N.A.
Corporate NMLS# 452955
2341 Main St. Tucker, GA 30084
Office: 678-534-5834|Cell: 404-909-3567 |Fax: 678-534-5836
Email: art.wood@goldwaterbank.com
Website and Online Application: https://www.LegacyMortgageTeam.com/awood​

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