In today's Seller's Market my clients often ask how they can be the best buyer in the eyes of the seller. I often provide the following advice to my clients to best position them to win the property of their dreams when there are multiple bids.
1. Get Prequalified
Meet with a local lender to get prequalified for a mortgage in order to know how much you can afford to purchase. The letter that the lender provides will show the seller that you are serious about your purchase and that you are ready to apply for a mortgage upon an accepted offer to purchase.
Getting prequalified requires several pieces of information. Most importantly this step is essential in verifying your employment and income. You'll want to be prepared to provide W-2 forms, most recent pay stubs, and two to four months of banking statements.
2. Start Saving Cash
In a seller's market, the opportunity to request "seller's assist" (where the seller pays some of the closing costs attributed to the buyer's side of the transaction) is limited. Be prepared to have enough cash on hand to cover the costs associated with purchasing your home. Buyer's in the Philadelphia market should expect to spend about 4 percent of the purchase price in closing costs.
However, when a seller really wants to close a deal quickly, they may be willing to help buyers with the closing costs. While there are limits on how much assistance/concessions the seller can make depending on the mortgage type, you may be able to get the seller to pay for 3 to 9 percent of the purchase price.
3. Think About the Best Terms
While some sellers are looking only for the highest price, others are looking to move quickly or more slowly so they have time to find their next home. While I often help my clients "feel out" the needs of the seller, I also look to my clients to tell me what is best for them. If you have flexibility in your timeline, consider this when making an offer.
Author:Jeremy Kaplan Phone: 215-317-0248 Dated: August 26th 2016 Views: 1,690 About Jeremy: Jeremy Kaplan was born in Philadelphia and raised in the Bucks County suburbs. After graduating from...
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