How to BUY LOW!
When prospective homebuyers warn me, “We’re only buying if we can get a great deal,” I want them to know: WE AGREE!
Deals CAN be made, but the overall climate is a Seller’s Market, or a “Neutral” market, depending on price, location and condition of the home. Good-quality homes in the low-to-mid price range sell very fast.
LOW offers are best when they’re STRONG in other ways - - - raising the odds of acceptance. This means:
- Time is of the essence. If a new listing is well-priced, ACT FAST ahead of other buyers. Sellers with multiple offers tend to respond as if they are in the driver’s seat, but this doesn’t mean “don’t bother!”
- "Cash is King." If you have access to cash, you have leverage. Do you have a HELOC (home-equity line of credit) on another property? Consider using it to buy fast, and obtain a mortgage later if necessary.
- Most homes are bought with a mortgage, of course. Be sure to have your lender pre-qualify you . . . or better yet, get fully pre-approved by completing the application process prior to finding "The House." We can introduce you to several excellent lenders who give our clients consistently great service . . . and when we submit your offer, this approval from a proven local lender boosts a seller’s confidence.
- Put forth a meaningful deposit (at least 1 to 3% of the total offer price). Remember that this "good-faith" deposit must be refunded if a buyer cancels during your initial "inspection contingency" period, typically the first 17-days in the standard California purchase agreement . . . but keep reading!
- Offer a short closing date (30 days or less). If you're buying with cash (or your lender has pre-approved you), a powerful strategy is to offer a close of escrow in 10-20 days! This is most effective when buying a vacant home. For an occupied home, consider closing fast while offering a maximum 29-day “rentback” agreement with protections to avoid post-closing hassles for YOU, the short-term landlord (ask for details).
- The hardest-charging negotiators ask for NO repairs or cleanup! While I strongly encourage all buyers to thoroughly inspect their purchase using suitable professionals, sellers want an “As Is” buyer and will usually favor such offers.
- Offer an inspection contingency period shorter than the standard 17 days. We know and recommend multiple responsive professionals who often provide through inspections in just a few days.
All of these strength-builders can sweeten the taste of your "lowball" offer. Call us when you’re ready to deal!