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How to Successfully Buy the Home of Your Dreams

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Though our region was largely unaffected by the rest of the nation’s housing market crisis we did experience a strong buyers’ market for a while. Today, however, we are definitely sitting in a seller’s market – one where sellers have the upper hand and buyers are left to compete against each other to win the home of their dreams.

To help you achieve the success you want when it comes to landing that perfect home, we’ve put together ten tips that will give you a better chance at getting the home you want.

Submit a Pre-Approval Letter With Your Offer
These days, sellers would rather avoid the uncertainty that goes along with not having the financial backing of a solid lending institution. When making an offer, be sure to submit a pre-approval letter (not a pre-qualification letter) to demonstrate that a bank is willing to lend you money.

Hire An Experienced Realtor Dedicated to the Profession
In a world where there are multiple agents multi-tasking to the umpteenth level, you will benefit most from working with a Realtor that is dedicated to the profession – and committed to your success. Along with a full-time career, comes the kind of experience that you should expect from your agent.
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Make a Clean and Neutral Offer
Nothing kills an offer like one that is loaded with conditions, complexity and difficult to decipher language. Make your offer clean, simple and as neutral as possible. Not only will it be attractive to the seller but also it will make your offer stand out against the rest.

Make It Your Best Offer
With the multiple offers typically seen in a seller’s market, it makes sense to come out with your best offer the first time around. Assume that your first offer is the one chance you’ll get – and chances are the seller will take it seriously.

Put Down A Larger Earnest Money Deposit
Just like sellers take making a strong offer more seriously – placing a fair amount of earnest money down also demonstrates your seriousness in the deal. Consider putting down one percent of the purchase price or more – depending on how badly you want the property and your Realtors’ suggestion.

All Cash Is More Attractive To A Buyer
Though sellers receive the funds either way, the difference that a cash offer makes is a matter of time and convenience. There is a longer waiting process entailed with deals that are financed through a lending institution and the last thing a seller wants is to prolong the transaction.

Shorten Your Inspection Periods
As long as you can get your inspections done you have nothing to worry about. One area that buyers can gain some leverage against others vying for the same property is by shortening the length of time allocated for those inspections. Where a typical time frame allowed for a home inspection may be 10 days, savvy buyers sometimes cut that in half.

Waive Some Contingencies and Offer To Pay Some Seller Expenses
If you are virtually certain the home is the one for you and there are no issues expected prior to closing, perhaps consider waiving contingencies to strengthen confidence in the seller. Whether this means waiving the mortgage contingency (ideal for buyers with alternative means to finance the property) or to waive other contingencies – it will stand out in sellers’ minds and give you the upper hand over others.

Write The Seller A Personal Letter
Not surprisingly, sellers are sentimental about their property and want it to go to what they perceive is the “right” family. Reach out and send the seller a personal letter explaining why you love their home and how you plan to extend the same care for it as they have done so. Attach a family picture to bring a human touch to the transaction.

Shoot for a Quick Closing (30 Days Or Less)
Rather than extend closing dates, work to resolve everything sooner than later. Sellers seeing the potential of an expedited transaction are more likely to accept an offer that provides them that opportunity.

Here’s even more information about how to gain valuable leverage in a transaction when sellers have the upper hand; Ten Tips for Winning Purchase Offers In a Seller’s Market. Listen to the Team Lally Real Estate Show, every Saturday on AM830 KHVH at 11am. And if you would like your very own free copy of the Honolulu Real Estate Guide, written by Adrienne Lally, contact us today and we will send it to you. Chapter two is dedicated to winning your home in a competitive market.

As always, we invite you to contact us for all your real estate needs. For buying, selling or investing in your dream home, trust Team Lally!