Sometimes it is important to ask a home buyer – how is your home search going? There are times that home buyers find their search not coming to an end. If you have been searching on your own and think you may need help we are here to assist you.
I watch the trends and I have been here before. It is that calm before the storm. Western New York is seeing multiple offers on homes. Many homes are finally selling after long periods of no activity. There is a shortage of good listings available on the market. Interest rates are ticking upward, buyers that have been on the fence for a long time are jumping into this market. Western New York is moving back to a normal market as opposed to a buyer’s market. In some areas and price segments it is becoming a seller’s market.
Well I have been working with a couple that insist on “low balling” every offer they write, against my advice. They had to lose a third house before they really understood that you cannot do that. They were mad at me for a bit until I shared with them the email I got from the other REALTOR that stated we were the lowest offer, (with an FHA mortgage, a pre-qaulification letter, home inspection in 5 days, close in 75 days and seller concessions) of 8 offers. They took an all cash offer over asking, home inspection in 2 days, no mortgage contingency, no concessions, close in 45 days that wasn’t the highest offer.
Seller’s are now in a position to be a little more selective and have some power in the negotiation process these days. Where seller concessions were a way to sweeten the pot awhile ago, they are not necessary to give when faced with multiple offers. Home sellers when faced with multiple offers will most always pick the most secure of offers.
You have to be strategic when you are facing multiple offers. I can assure you that the other REALTORS are telling their clients the same thing that I am going to tell you. That means if you are searching in one of these areas that are red hot you will need to:
- Write the offer right after you see the home
- Get a Mortgage Pre-approval instead of just a qualification letter
- Have your attorney selection made and tighten up the attorney review timeline
- Be ready with your home inspector already picked and do the inspection in a tighter deadline
- able to purchase without seller concessions
- Tighten your closing deadline — 60 days is typical in WNY, but there are ways to tighten the timeline
- Understand that if you are using FHA or VA financing, that can complicate things after the appraisal, sellers are more comfortable with conventional financing or thrilled when they see an all cash offer
- Be willing to put down a significant amount of money when you write the offer instead of the traditional $1,000
- Include a personal letter why you want that home — hey it can’t hurt!
I have seen many sellers take offers for many reasons, but generally when they have a choice they will first eliminate those that are below asking and then start to look at the other offers on the table. Cash always wins out, but I have seen an FHA win over cash because of the letter that was enclosed. I have also seen where it did not matter.
What About One Of These Homes?
All statistics are gathered from the Buffalo Niagara Association of REALTORS®.
For more information, call our J. Philip Real Estate Team at (716) 650-0051
Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call us at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home.
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