Spring and Summer are considered peak times to buy a home for several reasons: tax refund checks, better weather for improved curb appeal, easier moving, and higher inventory of homes for sale. According to Bankrate Chief Financial Analyst Greg McBride, “Mortgage rates should trend lower throughout the year as inflation pressures ease and the Fed begins to cut short-term interest rates.”
So, are you ready if you expect to be one of the thousands of home buyers this season? Maybe you have already found a home and are ready to make an offer. Are you willing and ready to enter a bidding war with others who want to buy the same house? Many buyers ask this question as it’s becoming more prevalent for homes to receive multiple competitive offers in a short time.
In this competitive market, putting forth your best offer is not enough. To help combat price competition, here are four easy tips to help you stand out.
- 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 few banks that provide this commitment letter. With this exclusive program, NASB will provide a no-cost, zero-obligation commitment letter indicating to sellers that you have a lender commitment to be financed. - Add an Escalator Clause to Your Offer
An Escalation Clause allows you to increase your offer on a house if another buyer makes a higher bid. 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 contingencies, such as your financing, home appraisal, or inspection, or selling your own home. Sellers may overlook your offer or view it as a risk if you include a scenario in which you would only buy their home if everything goes perfectly for you. To avoid having your offer set aside, keep it clean and include the NASB Home Buying Advantage commitment letter to show 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 homes to anyone. They may take comfort in knowing the beloved home they’ve cherished for so long will be well taken care of and in good hands.
If you are in the market for a new home, reach out to the home mortgage experts at NASB by calling 888-661-1982
