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Results For Tag: seller

Is Cash King

April 2, 2013 |  Article By :   | 

dollar signIs cash king in every multiple offer situation? With the new housing market, limited inventory and bountiful buyers, multiple offers have become commonplace and it seems that there is always someone with cash that takes the prize.  Especially for first time home buyers these cash buyers are making the process a bit more difficult.  Sellers want to see a solid offer so they know that their home will close as planned and nothing will “fall apart” to ruin the deal, which makes sellers a bit partial towards cash offers.

If you are submitting a financed offer there are some things you can do to make your offer more attractive to the sellers and maybe beat out the cash offer.  Make sure you are offering your highest and best offer, put as much as you can in the down payment on your loan, this shows the sellers that you have some money and are serious. Submit a nice earnest money check with the offer which also shows you are serious about buying the house. Offer the sellers ample proof that you will qualify for the mortgage and offer to give them a financing approval by a certain date prior to closing.

Cash is a tough competitor, but it can also be beat. Talk to your Realtor to find out your best strategy if you are in a multiple offer situation and are competing against cash buyers.

Tips for Multiple Offers

March 26, 2013 |  Article By :   | 

9518793_sAs I have said often this year, housing inventory is very low and buyers are out in force creating multiple offer situations on many homes. What can you as a buyer do to help make sure the seller chooses your offer? Obviously, there are many factors and the ultimate decision is the seller’s but there are a few things you should know up front to make your offer more competitive and you will also want to discuss the best strategy with your realtor.

  • Be prepared to offer asking price or even above if necessary.
  • Know what price you can afford and don’t look at homes right at the top of your price range as it will not leave you room to negotiate, the days of the low offer and getting a good deal are rare right now.
  • Make sure you are pre-approved before you start looking at homes, this process can take some time depending on your situation so make sure you have your loan officer lined up and ready to go with the pre-approval letter when you find the right home.
  • The more money you can put down on the house the more stable you will look to the sellers. Buyers that can barely scrape together the money for a small earnest money check and down payment will have the sellers wondering if you can really qualify for a mortgage. Sellers love seeing cash, so the more the better.
  • Be ready to adjust your closing date. If you want it to be 3 months out and the sellers want to move in 6 weeks, you need to be willing to adjust or they may take an offer that is flexible.
  • Try to be a non-contingent buyer. Why would a seller choose to take a contingent offer if there are non-contingent ones on the table? The contingency is a big risk for the sellers.

Offer Response Time

March 25, 2013 |  Article By :   | 

purchase agreementOne question most buyers that have written a purchase agreement are asking these days is what is the offer response time from the sellers.  The past few years when buyers were scarce, sellers were responding rather quickly if they got an offer but these days with so many buyers and showings sellers are not so apt to rush into anything.  Normally the seller will get the buyers a response in about 24 hrs.  Right now if there are a lot of showings they may hold off to see if they can get multiple offers.  You can put a response time on your offer, but in that case you need to be ready to say forget that house and move on if the sellers choose not to respond in your time frame.

If you are looking at bank owned properties they often will wait days if not up to a week to see how many offers they can get. Generally at some point they will ask for the highest and best offer and then make a decision.

It may not seem fair to the buyers, but the sellers are in control right now with so many buyers and so few homes for sale. The best plan is to make a good solid first offer, be flexible if there are multiple offers, exercise patience and consult with your Realtor for your best plan of action.

Buyer or Seller Market

September 18, 2012 |  Article By :   | 

People are always asking is it a buyer or seller market.  In a buyers market prices are low and there is a lot of inventory to choose from.  In a sellers market the prices are on the rise and the inventory is limited.  Since the housing crisis, the Twin Cities has been a buyers market but it now appears that things are switching over to a sellers market.  According to the Minneapolis Area Association of Realtors, right now we have a 4.1 months supply of inventory of homes for sale.  This means that in the current market it would take 4.1 months to sell all the homes that are listed as active today.  As a rule of thumb the following numbers of months supply of inventory dictate the type of market we are in:

  • Seller’s Market = Less than 5 Months of Inventory
  • Balanced Market = 5 – 7 Months of Inventory
  • Buyer’s Market = More than 7 Months of Inventory

So, judging by the August numbers and these figures, if you ask if it is a buyer or seller market I would say we are heading into a seller market but the slow time of year is approaching so the numbers may swing back more to the balanced market.