Spring is here….
The real estate market in Northern Virginia continues its roll into the Spring selling season. Inventory on resale homes has risen slightly, but so have sales. The slight rise in interest rates have not slowed things down and we don’t expect anything to change. The nice thing if you are looking to buy, you now have more selection – but if the house is in great condition, you will be in a competitive situation. You will definitely want to put your best foot forward in this type of buying scenario.
Here are a few tips to consider when looking to buy a home:
- Have full pre-approval for your loan with a local and well known lender, preferably one with a working history with your agent. This provides leverage and surety when negotiating with the seller and listing agent or when competing with other offers.
- Put down a large Earnest Money Deposit (EMD) – if you are putting a down payment of 5%, make your EMD 5%. This is money that you will eventually be putting into the deal anyway so it really just constitutes a pre-payment. It is returned to you if any of the contingencies do not pan out.
- Have a very short finance contingency timeframe and have your lender call the listing agent to discuss your qualifications.
- Waive the appraisal if and only if you are confident in the value, you have the cash available to make up the difference and it is a home you absolutely cannot live without.
- Consider conducting a home inspection (for informational purposes) with the right to void if you dis-cover anything you were not expecting to find or if a repair is costlier than you expected. Especially with newer homes or those that have been highly renovated and well maintained.
- Determine the seller’s timeframe and add that date as your settlement date. If they need a longer timeframe to close, consider adding free rentback period with an early close so they are not worried about a long, drawn out closing.
- Do not ask for a home warranty paid for by the seller.
- Write a personal letter to the seller explaining why you want to be the next home owner.
These tips won’t guarantee you will get the house, but they will help.
If you are thinking of buying, please call me to discuss your situation and how we can make these suggestions work for you. If you are selling, I have strategies to discuss with you on pricing, staging, and how to handle multiple contracts when they come in on your house – if you don’t want to wait until next month.
It’s a good life.