How to get the best buy in today’s market
I here this question all the time: “Cynthia, we want to get the best buy and want to bid LOW when we’re ready to buy, Are you okay with bidding low?”
My reply: Today’s market is both a buyer’s and seller’s market. The key to get the best buy on a an investment is an aggressive broker working on behalf of a strong qualified buyer, Cash is great, however a well qualified buyer can negotiate just as aggressively as an all cash buyer: Therefore: YES, low bids are OK.
Rules for summiting any offer:
- “Cash is King.” Every seller likes to find a secure buyer who doesn’t need to wait for loan approvals, underwriting, etc. If you have access to cash, use it to drive down the sale price.
- Most homes are bought with a mortgage, of course. Be sure to have your lender pre-qualify you . . . or better yet, get pre-approved by completing the entire loan-application process prior to finding “The House.” I can introduce you to several excellent lenders who give my clients consistently great service.
- Submit a large deposit (at least 1%-2% of the home’s price). Remember that your “good-faith” deposit is normally refundable if you cancel the purchase for any reason during the initial “inspection contingency” period.
- Offer a short closing date (30 days maximum). If you’re buying with cash (or your lender has pre-approved you), a powerful strategy is to offer a close of escrow in 10-20 days! This is most effective when buying a vacant home.
- Ask for NO repairs or cleanup, and only the bare-bones seller-paid inspections. While I do encourage all buyers to thoroughly inspect their investment – – – using suitable professionals – – – it’s customary to ask a seller only to pay for a pest inspection. For a property with a well and/or septic system, there are usually more inspections at seller expense; let’s talk!
- Offer an inspection “contingency period” shorter than the standard 17 days. My team of responsive vendors can often provide professional inspections in just a few days.
All of these strength-builders can sweeten the taste of your “lowball” offer. CALL if you’re ready to make a purchase!