“Understand the market, take advantage of the low prices and rates, and then build a team (realtor and loan officer) around you that also understands the market and go find the house of your dreams!” ~ Roshel Corcoran, Co-Branch Manager, American Liberty Mortgage, Inc.
Buyers, did you know the market is making a shift and becoming more of a seller’s market? What does this mean for you?
Well for starters- sellers are getting list price or a bit higher for their properties right now. There are more buyers shopping for homes than there are people selling. Think about it, in this case, more than likely you and two or three other people like the same home and all write an offer for “the home of your dreams.” In the industry we call this a bidding war. You, as a buyer, need to bring your highest and best offer to the table to try and beat the other offers on the table. Please trust your real estate agent before you send in an offer $20,000 lower than the list price. Think about it- if there are more buyers than there are houses and the house has been on the market for a week, do you think the seller is going to jump on your lower offer or kindly reject the offer and wait for the next buyer who is willing to pay closer to list price? Now this isn’t always the case, not every house is going to be a multiple offer situation. Some are just you and the seller. But, these are just a couple thoughts for you to think about while you’re out there shopping!
Now you get the contract on your dream home and it is time to get the financing rolling—WOO HOO! Please keep in mind, sellers are holding true to the terms of the contract. It’s very important you turn in your paperwork into your loan officer in a timely manner- timely to me is 24-48 hours. The sooner the better. Mortgage companies have multiple files in process and as much as they would like to review your documents as soon as you send them in, sometimes other files are ahead of yours. It may take your loan officer and their team 24 hours to get to your documents. This piece is critical. Not aggressively turning in your documents can delay the process, which may delay closing and may not get an extension on the contract from the seller. Some sellers are charging to extend- some want a non-refundable escrow. They are being aggressive because they know there is another buyer out there that wants the house bad enough to play their cards right and get it done on time.
Why am I telling you this…? EDUCATION!
I want you to understand what is going on. This isn’t something you do on a daily basis and I want to make sure you understand what you are up against.
Right now is still a great time to buy! Price values of homes are low and interest rates are also some of the lowest we have seen in a long time. Don’t be afraid of the market! Understand the market, take advantage of the low prices and rates, and then build a team (realtor and loan officer) around you that also understands the market and go find the house of your dreams!
Home ownership is one of the most rewarding experiences but is also something that takes work!
Have fun- take it all in- and remember, once that seller accepts your offer, it’s go time!