Homes on the market aren’t available long these days, making it challenging to be a homebuyer. This is especially true if you are a first-time homebuyer and unfamiliar with the process. However, there are ways you can prepare for this process when in a seller’s market that will improve your odds of landing the perfect home.
Have Your Financing Ready
There isn’t enough time to go through the mortgage preapproval process after you’ve already found the home of your dreams. There will be other buyers eager to place offers that already have financing secured with their lender. It’s not hard for a seller to choose between two offers when one doesn’t have a preapproval letter. Before you even look at homes on the market, have that letter ready.
Send an Offer Letter
Many buyers will send an offer on the home but may not think to send an offer letter. An offer letter lets the seller know more about you and why you want to buy their home. You can let them know why it’s the perfect home for you and your family or even if you already have plans for updates or renovations. An offer letter creates a personal connection with the seller and may help them decide when choosing which offer to accept.
Nix the Contingencies
Sometimes, when purchasing a home, buyers can get caught up in the contingencies. These contingencies can slow the process down and make the seller less likely to choose your offer. Some contingencies, like a home inspection, are common. However, a contingency like making the sale final only after selling your own home is likely to get your offer rejected in a seller’s market.
Consider Earnest Money
Earnest money is also called “good faith money.” This is money that you put down on the home during the purchase process. Offering earnest money with your offer helps to show the seller how serious you are as a buyer. If you back out of the sale, the seller keeps that money. If issues come up with the inspection or appraisal process, then earnest money can be returned to you.
Work with a Real Estate Agent
The best way to ensure your offer gets to the seller quickly and is seriously considered is to work with a real estate agent. An experienced agent knows the local market inside and out, knows when homes are put on the market, and knows how to represent you and your offer best.
It’s essential to work with a real estate agent that understands your needs and can help you throughout the home buying process. Whether you are looking for your first home, a bigger home, or a second home, Voila’s team can help you find it.