March 1st is the unofficial start of the house hunting season. In a competitive market, it is not unusual to have multiple offers on a property. How can you improve your readiness and make your offer stand out? Here are our five tips.
1. Get pre-approved for a loan. Talk to a mortgage broker before looking for houses and get a pre-approval letter from a trusted lender. This will give you a better idea about how much you can afford and will show your seriousness to a seller.
2. Be ready to provide a proof of cash assets. Sellers usually prefer all cash offer, but getting a loan is not a deal-breaker if you come prepare with a pre-approval letter from a trusted lender (see point #1) and are willing to show you have cash in the bank for the down payment and closing costs.
3. Manage your expectations. Know your market. A good real estate agent can guide you on what a reasonable offer is. If you are not yet working with a real estate agent, we will be happy to refer you to someone we trust.
4. Be ready to walk out. Don't fall in love with a property until everything is signed and done. Sometimes, for various reasons, a deal can fall through.
5. Talk to a lawyer beforehand. In a competitive market, time is of the essence. If you have an accepted offer you want your attorney to be available to review the contract of sale quickly and sign it before somebody else comes with a higher offer. Even on a weekend or on an evening.
So let's... get ready, set, go!
Happy house hunting!