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How Buyers Survive In A Sellers Market
Dated: June 30 2017
My real estate business has always been an even mix of buyers and sellers... So I represent approx. 40-50 buyers every year and right now in Las Vegas if you are looking to purchase a home in the $150-$300k range you are no doubt about to start pulling your hair out!! Why you may ask.... Simple... There is an inventory shortage in that price range and a HUGE demand fueled by low interest rates... So no matter what you are selling (watches, TV's, homes, etc...) that has a shortage of inventory and huge demand you are always going to have rising prices and battles between buyers trying to attain those items... If a home lists in this price range and is somewhat turn key move-in ready we will see multiple offers within the first 12-24 hours... There is NO stealing or asking for the world from these sellers... You MUST go in with your highest & best offer right off the bat...
I have listed a few tricks buyers can use to get their offers looked at and hopefully accepted... You always have to remember that sellers would rather work with an all cash buyer #1... Reason being is all cash offers have no appraisal and can close quickly! No banks to deal with! Second would be conventional loan types where the buyer are putting 10-20% down... These buyers tend to be a little stronger than VA or FHA loan types... But NOT always I might add!! This is just the way most sellers think or that their agents inform them... It should be noted that there are plenty of VA/FHA buyers that are much stronger than conventional buyers so this rule of thumb has some flaws...
Trick #1 If you are a VA/FHA buyer ask for the least possible dollar amount from the seller in closing costs... Asking for the seller to pay your closing costs makes your offer weak! Asking for $0 would be best!!
Trick #2 If the comps will support a higher than list purchase price and you need the help from the seller on your closing costs than offer above list equal to the amount you need help with... So if the list price is $200k and you need $6000 in closing costs than offer $206k... ONLY if the home will appraise otherwise it is a waste of time... The more the seller will NET is the name of the game!!
Trick #3 If you are up against multiple offers do NOT ask for the seller to pay for your home warranty & agree to take the home "as is" meaning you will agree to NOT ask the seller for any repairs... It is important to keep in mind that agreeing to take the home "as is" does NOT mean you can't ask for repairs once you get the home inspection report back! If you end up finding some major issues you can still ask for the seller to repair, give a credit or you can cancel... You are NOT waiving your right to ask for repairs... This only happens when you waive your due diligence period... DO NOT do that!!
Trick #4 If you have the cash on hand offer above list price and agree to waive your appraisal contingency... This is where you will need an agent who really knows their stuff and can tell you what the home is expected to appraise for... This is the BEST way to compete against all cash offers... If a home is listed at $200k and would only appraise for $200k and you offer $215k trying to steal the home from the all cash buyers, you will need to pay the $15k out of pocket as the bank will only lend on appraised value...
Hopefully these tricks will help you out there in the field... If you find yourself needing help call me anytime 702-218-4585 I would love to help you.... DH
Daryl Hanna and The Hanna Group are committed to bringing the respect back to the real estate profession through making sure each and every transaction is handled with the utmost care & respect!! The ....
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