What Buyer's Need to Know Before Making an Offer
I read this really great article on things buyers should know before making an offer on a property http://realtytimes.com/rtpages/20090629_buyers.htm. A lot of the items are things that I preach to my clients on a regular basis. Some of the highlights from the article with my take on them are below.
Price isn't always the determining factor in acceptance of an offer. My clients have won out over other offers because of flexibility with settlement date, conventional loan over an FHA loan, and just having a clean properly filled out offer. You won't believe how many offers I get from agents where there are sections of the offer that aren't filled out properly or sections are left blank, outdated forms are used, and lender letters are not attached.
In the Northern Virginia market place even if there is a financing contingency in the contract most agents won't take an offer without a pre-approval letter from a reliable bank. I generally won't take anyone out to see property unless they have spoken to a lender. There is no point in seeing property that you are not qualified for. The last thing I want is for my clients to fall in love with a property and then not be able to buy it because they aren't qualified for the loan to purchase the property. In todays turbulent credit market I have to be so careful with clients that were qualified previously and decided to rent for a year. Many of my clients are qualified for less than they were previously even thouh their financial picture is the same. Banks have tightened up credit and are lending less money to even the most qualified buyers. I don't like last minute surprises so it is very important to start the loan process and get your documentation in to the loan officer before the search process is started.
Another question I get a lot once I show property is, "How low can we offer on this property?". My standard response is that every seller is in a different situation and has a different level of urgency to sell their property. I will provide a CMA to guide my clients as to what they should offer on the property. There are neighborhoods in Northern Virginia where homes move quickly with multiple offers, and others where homes just sit for what seems like endless periods of time. Depending on what the sales are for the neighborhood and concessions that are given it varies from neighborhood to neighborhood. Uultimately the buyer will need to decide how much sleep they are going to lose over not getting the property. Obviously when there are other offers on the table the buyers leverage goes down.
I always sit down with my clients and have a pre-liminary meeting to discuss the entire purchase process. The most important part of the discussion is minimum downpayment, closing costs, etc. During this initial meeting we go through the entire purchase process from searching for the right home to closing. I also go over the contract forms that need to be filled out during the purchasing process. Current hot topics such as the First Time Homebuyers $8,000 Credit, and Foreclosures vs. Shortsales are topics that I have been discussing in my recent buyer appointments.
Contact me to set-up a no obligation buyer appointment. To search the Northern Virginia MLS please visit my website at http://www.kimdarwaza.com
Kim Darwaza, REALTOR®, GRI, ABR, CRS, CDPE
Graduate, REALTOR® Institute
Accredited Buyers Representative
Certified Residential Specialist
Certified Distressed Property Expert
NVAR Multi-Million Dollar Sales Club Member 2005, 2006, 2008
NVAR Residential Top Producer 2007
RE/MAX Allegiance
703-856-2254 Cell
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