In honor of American Housing Month, we're talking to our potential home buyers out there about how to stand out for the home buying season! There are many reasons why Spring and Summer are considered peak times to buy a home; tax refund checks, the kids are home for summer break (making it easier on them to transition into a new home), and a higher inventory of homes go up for sale. According to the home search site, Trulia, 31% of Americans believe 2018 will be a better year than 2017 to sell a home so inventory is only expected to climb.
So, if you are expecting to be one of the thousands of home buyers this season, are you ready? Maybe you have already found a home and are ready to make an offer. Are you willing and ready to go into a bidding war against other people wanting to buy the same house? This is a question many buyers find themselves asking as it’s becoming more prevalent for homes to receive multiple, competitive offers in a short period of time.
In this competitive market, putting forth your best offer is just not enough. To help combat the buying competition, here are 4 easy tips on how you can stand out in today’s market.
- Write a Lender Commitment Letter
A Lender Commitment Letter is one of the best ways you can stand out against other buyers. This document tells the seller you are pre-approved and already 75% through the buying process, allowing you the ability to close much faster than others. The NASB Home Buying Advantage Program is one of the only banks that provide this commitment letter. With this exclusive program, NASB will provide a no-cost, zero obligation commitment letter indicating to sellers you have a lender commitment to be financed.
- Add an Escalator Clause to Your Offer
An Escalator Clause allows you the ability to increase your offer on a house if there is a higher bid from another buyer. Don’t forget that if you agree to pay more than the market value determined by an appraisal, you’re expected to pay the difference.
- Omit Deal Contingencies
To strengthen your offer, make sure the sellers understand you are serious and ready to purchase by removing any loan contingencies like your loan financing, home appraisal or inspection, selling your own home, etc. Sellers may overlook your offer or see it as a risk if you include scenarios of only buying their home if things go perfectly for you. To avoid having your offer tossed to the side by keeping it clean and including the NASB Home Buying Advantage commitment letter to let them know you are a serious buyer!
- Write a Love Letter to Sellers
Much like you would to your middle school crush, write a love letter to the sellers of how much you love their home and (briefly) share your story. Not only will this help you stand out and show that you’re genuinely interested, but sometimes sellers are reluctant to sell their home to just anyone. They may take comfort in knowing their beloved home that they’ve cherished for so long will be well taken care of and in good hands.