This is a paid post contributed by a Patch Community Partner. The views expressed in this post are the author's own, and the information presented has not been verified by Patch.
If you are looking for a new home in 2021, you may find the process a little frustrating. But don't worry, it's going to get better. For the last several months, inventory has been low and there is an extraordinarily high volume of buyers so when a house does come on the market, it usually is under contract very quickly. Although inventory appears to be increasing in some areas, this trend may continue as we move through 2021 and into 2022. In the meantime, here are a few tips to ease the tension for buyers:
1)Pre-qualification letter - If you are serious about finding your next home this year, you must be ready to move quickly when you find the right home. While a mortgage pre-qualification letter can often be obtained within a couple of days, those couple of days could mean the difference between getting an accepted offer and losing out to another buyer who is better prepared. This letter can be obtained from your bank or a mortgage broker and should be dated within 30 days of when you submit your offer. Getting your letter updated with a more current date is usually a very quick process. You cannot submit an offer without a prequalification letter.
Find out what's happening in Three Villagefor free with the latest updates from Patch.
2) Once your offer is accepted, you will want to get a home inspection scheduled as quickly as possible. This is the first step toward getting the house under contract after your offer is accepted. The typical cost of a home inspection will range from $500 to $800 depending on which inspector you choose and the size of the house. There are buyers today that are willing to waive the inspection which could be a very costly mistake that may come back to haunt them later. Do not fall into this trap. A better approach would be to get the inspection done but do not go back to the seller asking them to pay for repairs unless there is a major item in the report such as a leaky roof, a heating or AC system that isn’t working, major plumbing issues, etc.
3) Locate a Real Estate attorney when you start looking for a home. (You may already have one if you are also in the process of selling your current home.) Do not wait until your offer is accepted to start looking for an attorney. This is a critical point in the transaction process. It is important to remember that a seller can continue showing the home and consider other offers until the contract is signed so the contract should be negotiated through your attorney and signed as expeditiously as possible.
Find out what's happening in Three Villagefor free with the latest updates from Patch.
4) If you need to sell your current home before you purchase your new home, timing is critical. In most cases, you will need to have your house under contract before an offer on a new home will be accepted by the seller. The exception to this would be if you can qualify for a mortgage without selling your current home or if you are paying cash without the proceeds from your current home.
5) Unfortunately, bidding wars on houses are common right now. If at all possible, you should decide ahead of time on what your maximum price is. Deciding on this number in advance will alleviate some of the stress during negotiations.
7) Terms of the offer.
- A) The price you offer to a seller for their home is of course a very important component of your offer. Do not neglect the other aspects of your offer because you think you are offering a more than fair price to the seller that may even be over the asking price.
- B) Flexibility in a closing date may be very important to the seller depending on their circumstances. A lot of buyers make the mistake of thinking that every seller wants to close quickly. This is not always the case. Some may want to close quickly but others may need a delay in closing because the home they are buying or building won’t be ready for a few months.
- C) How much cash are you putting down at contract? If you are offering the same price as another buyer but you are putting 5% down at contract and the other buyer is putting down 20%, chances are good that the seller will choose the other buyer. If you are 100% sure you want the house, you should put down as much as you reasonably can when you sign the contract.
I look forward to hearing from you.
Peter Lunde CBR, SRS, SRES
(631)601-7906
plunde@cbamhomes.com
This post is an advertorial piece contributed by a Patch Community Partner, a local brand partner. To learn more, click here.