Any number of things, ranging from a competing buyer’s all-cash offer to an insufficient earnest money deposit, can turn a dream of home ownership into a nightmare. In our current marketplace houses are in short supply, sellers have the advantage over buyers, and bidding wars often erupt between buyers.
Pay cash. Investors have been snapping up homes to flip or rent, and they usually come to the table with cash. Sellers love all-cash offers because they’re less likely to fall through before the sale closes.
Get preapproved. If you require a mortgage check your credit reports. That will give you time to dispute any errors and take short-term steps, such as paying off debts, that will improve your credit score.
Make your best offer on price. You may only have opportunity, so make your best offer based on recent comparables, what you’re willing and able to pay.
Beef up your earnest money. Michael Matthews, broker/owner of Orange Key Realty, says, “This deposit signals how serious a buyer you are. If you must renege on the offer for any reason allowed by the contract or state law, you’ll get your money back.”
Pay for extras yourself. These might include closing costs, homeowner’s association dues, a home warranty, etc. Make contingencies palatable. According to Ofir Hillel, broker/owner of Orange Key Realty, “Most sellers prefer offers with no contingencies, but you probably can’t let go the protection that contingencies provide if you want to cancel the contract. Offset a financing contingency with preapproval and a strong earnest money deposit.”
Write a love letter to the sellers. This will help you connect with the sellers, especially if you haven’t met them. A simple note to the homeowner expressing your thoughts on their home can make all the difference.
Give the gift of time. Express your willingness to work with the sellers’ timetable to go to closing. If the sellers want to remain in the home after closing, offer them a “lease/rent back,” which means that you will be their temporary landlord. This is a legal arrangement.
Orange Key Realty’s staff of sales and broker associates can be reached at either: 863 Georges Road, Monmouth Junction, (732-297-6969) serving Middlesex County, and 60 E .Main St., Freehold, (732-863- 6969) serving Monmouth County. Visit www.orangekeyrealty.com.