It’s a seller’s market in the North of Boston area right now, and we at Andersen Group Realty want to help you prepare to make the best offer possible. Here are our top tips on improving your chances of owning your dream home:
Offer prices and days on market
A newly listed property requires a higher offer price than a property that has been on the market for months. Our realtors can provide insight into how many offers are already on the table and a market analysis to show you how similar properties are faring. With this information, you’ll be poised to make a strong, competitive offer. Moreover, be sure your offer has an expiration deadline –usually 24 hours after the offer is made–so that the buyer cannot keep shopping around for a higher price.
Options when it comes to the inspection
While you should always have an inspection conducted, it may be in your best interest to maneuver around this contingency. If you decide to make your offer more compelling by waiving the inspection, our realtors can still send a contractor to give an opinion during a second showing.
You can also offer an aggregate amount of money for the inspection, which may be anywhere from $500 to $50,000. Please note, however, that if the property needs minor work and is less than the amount you offered, you cannot renegotiate or walk away from the deal. Another option is an informational inspection, meaning that you’ll see what may be wrong with the property and still have the ability to walk away from the deal.
How to avoid financial complications
The simpler your offer is, the better. Realtors and market-savvy sellers avoid bids that are dependent on the sale of the buyer’s home. However, if you have a Purchase & Sale Agreement on your current house, provide proof; that will keep you in the running. If possible, make an offer that waives the financial contingency. This essentially means that you can provide the funds without requiring a mortgage already in hand. The downside to this option is you cannot back out of the sale and you may be responsible for the 5% purchase price even if the appraisal doesn’t match your offer.
The most attractive offer you can make is cash. Be sure to provide a Proof of Funds and know ahead of time that you cannot back out of the sale. This also may require you to pay the 5% purchase price when you sign.
Offer to put more than 5% down
When it comes to the Purchase and Sale Agreement, be willing to put more than 5% down. This shows sellers how serious your offer is compared to other bidders.
Be flexible with your closing dates
By letting the sellers choose the closing date, you are giving them incentive to choose your offer. Sellers may want to close in as little as thirty days, or may need a few months to find a new home of their own. An option here is a leaseback agreement, where you purchase the property and the seller leases it back from you. Essentially, your purchase acts as a loan and the seller pays you rent while they remain at the property.
Your flexibility may be a deciding factor for whether or not you acquire the home of your dreams. However, waiting to close can affect your mortgage rates if you have waived the financial contingency. In that case, be sure you understand rate locks with your lender so you don’t end up paying more.
Do not ask for excluded items and fixtures
If the seller has put the washer and dryer on the excluded items list, do not try to negotiate to keep them with the purchase. Be willing to let the seller keep their excluded items list intact, and your offer will be more attractive than those haggling to keep the refrigerator and stove.
The popularity of the North of Boston area is increasing, and so is the demand for housing. Luxury properties will not be on the market for long, so ensure that you have the best team at your disposal. Andersen Group Realty is here to provide you with the expertise and dedication necessary to purchase your ideal home in Winchester, MA and the surrounding areas. Contact us today.