Low Inventory Requires a Buying Strategy
1. PreApproval - You've probably read my prior email on the Importance of a PreApproal and if we've spoken, I'm sure we've discussed it. Obtaining your pre-approval letter from a reputable lender prior to starting your search and prior to submitting an offer on a home is absolutely essential. I won't reiterate my prior email, but three of the most important reasons to obtain your letter early is: You'll know you're searching in the right price range, you'll find out early if there are any discrepancies on your credit report, AND I will need to submit your letter with your offer to the seller. Let me know if you'd like me to send you the contact information for a good local lender (always best). One of the first things I look at and advise my seller on when I am the listing agent is who is the buyer's loan processor is and what are the benefits and drawbacks of that lender.
I can discuss with you too.
2. Work closely with Lew. I understand going it alone and doing your own due diligence when purchasing a car. After you've determined that you want a new Toyota, you simply drive to the nearest Toyota dealer where they have every model of Toyota there at your disposal. If you test drove a Camry and wanted to think about it overnight and someone else purchases the car that you drove, no worries the Dealership has more just like it; it's fairly objective.
On the other hand, there are so many subjective variables when purchasing a home. It's to your maximum benefit to find a Realtor who has experience, a good reputation with the Real Estate industry, one you trust, one you can communicate and work with, and one who has you're best interest in mind. I realize you may not be looking for a new home for 1 or 2 years, six months, or three, but the earlier we start communicating, the better idea I'll have on your goals, what type of home you'll be looking for and be able to best advise you. I don't bother people, don't push, and don't spam - I am here to help you find the best home with the least amount of anxiety and to meet your goals.
3. LISTING ALERTS: I subscribe to and use two on-line real estate listing systems to send you listing alerts. The first is probably the one you're receiving alerts from now. The other takes data directly in my Realtor MLS system. There are advantages to both. The first one is good if you're in the early stages of looking for a home or taking a look at our market. You'll routinely receive listing alerts based on the criteria I have for you in this system (If we haven't spoken yet, it's whatever you inputted when you first signed up). But you'll receive them on a revolving basis. I can set this system to send you alerts daily, weekly, every three days, ect. This first system is good for those six or more months out from purchasing a home.
It's important that we communicate about what criteria you're looking for so the listings I send you at least match the criteria in a home that's important to you. Many times I'll look at someone's search, who I haven't spoken with. It look something like: Area: Pensacola; Beds: 1+, Baths: 1+; Price: $76k - $2.2M. Chances are this is nothing like what you're really looking for making the listing alerts irrelevant and quite honestly a pain for you.
The second system, through the MLS, is best suited for those within six months of actually looking to purchase; you WILL NOT receive daily email listing alerts. After we talk, I'll set you up with the specific criteria you're looking for in a home. I'll then email you all the homes currently for sale matching your specifications and set you up with your own website where those listings will be stored and revisited by you anytime. You will be able to mark each listing as "favorite", "possible" or "rejected", then be able to revisit only those homes within each category. The real benefit to this system is AS SOON AS any Realtor pushes the send button after entering a new listing matching your criteria, you will immediately receive a listing alert for that house. This means you'll be one of the first to see it.
4. Home Search App - I've purchased my own Home Search app for you to use. It will tie directly into your account on my website. It will use the criteria that stored for on this site (or you can modify it). One of the nice features is if you're in the local area and you see a home that looks appealing, the app will recognize your location and show you listings in your current area. Let me know if you'd like me to send you a link so you can download this app.
5. Be Prepared to Move Quickly - As I stated in the email, I will never push you to buy a home, but when you've determined "this is the one", we need to sit down, do a market analysis on the home, work together to draft the price and terms of the offer, then I'll submit the offer that day. Even when our market was slow (during the mortgage bust), I had folks where we found the house that they really liked but told me "we're going to think about it". Lo and behold, when they get back to me to submit an offer, I'll pull it up in the MLS and see that's it's already under contract. There's a saying in Real Estate - "If you sleep on it, someone else will be sleeping in that bedroom". Again, not like car buying, you can't just select another Toyota Tundra.
6. Competitive Offer - A seller's market is not the time to say "well lets just submit this offer amount and see if they'll go for it". Again, prior to submitting an offer I'll do a market analysis on the home, just like I would if I were selling it, then recommend an offer price and show you why so we can discuss. That said, it's definitely always up to you what price we offer and what price you ultimately accept in negotiations. This does not mean we'll always go in at list price. Remember it's my goal to get you the house you want for the lowest price possible and the best contract terms. There are some instances though that full list price (or higher) may be warranted. Bottom line, we need to submit the best possible offer with the intention of it being accepted by the seller.
7. Limit Contingencies - This goes hand-in-hand with number 6. Remember, whether there's already another offer on the home you selected or more possibly before the home is under contract, or just the seller knowing there are a lot of buyers out there, you're competing to get the home you selected. I would always recommend contingencies for a home inspection and wood destroying organism (termite/wood rot) inspection we need to think carefully about submitting any other contingencies. No this is not the time to submit a contingency for the sale of your current house, particularly if it's not even on the market yet. Once you do have a contract on your house and inspections are cleared, we could then submit a contingency for your sale. Keep in mind though, if a buyer comes in behind you and submits an offer without those types of contingencies, they will more than likely win out.
I hope this helps. I look forward to hearing from you.
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