5 Tips to improve your competitive position when buying your next home

5 Tips to improve your competitive position when buying your next home

Buying a property is probably one of the largest investments you will ever make. However, the real estate market is very competitive these days. Properties are sold on average within one month or even less- just taking a few hours to get off of the market in most parts of the United States. Customers have less time to identify, bid, and score the property of their choice. Factors like the desirability of the learning institution district, walkability, and nearness to working stations are some of the common things elevating the prices of homes.

Currently, the high rents across the states and attractive low interest loan rates are convincing most individuals to take the property-ownership leap as soon as they can. However, by being a bit flexible when considering these features, purchasers can improve their competitive position and find and acquire a property of their choosing.

How to be more competitive when purchasing your next home

Here are the five common tips to get through the home-buying competition:

1. Cash is king

Although cash isn’t mandatory, it certainly makes an offer more attractive. Paying in cash eliminates the need for a financing contingency within a contract. A financing contingency essentially means that if a buyer cannot procure financing within a specific time for the purchase of the property, the buyer has the option to cancel the contract. In this circumstance, if the buyer were to timely cancel, any earnest money deposit tendered in the transaction would likely be reimbursed to the buyer. By eliminating the financing contingency, the seller will have one less thing to worry about when it comes to getting the transaction to closing, which is why cash is king!

2. Get preapproved

Although it should go without mentioning in the “current market,” most buyers still start visiting properties without an approval letter, in hand, from their mortgage lender. If cash is unavailable and you opt to go with financing, you should ensure that you have an approval letter in place before you start visiting properties. An approval letter is different from a preapproval or prequalification letter in that, with an approval letter, the lender has already vetted whether you qualify for a mortgage loan. When an approval letter is granted, it means that your lender has already evaluated your credit history and other factors and has officially approved you for the loan.

Issuing an offer to the seller with just your prequalification or preapproval documents could potentially sink your bid since prequalification or preapproval only evaluates what amount a buyer may be able to borrower based on the information provided to the lender. Orlando Real Estate lawyers can help you with ensuring you have all of the items you need when you start visiting properties you may be interested in purchasing.

3.     Find diamonds in the rough.

Many in-demand neighborhoods have these types of homes, the homes that have a lot of wear and tear, but that also have the potential to amount to so much more. Purchasers searching for their dream homes are most likely to avoid houses that do not have all of the state-of-the-art bells and whistles, but sometimes a diamond in the rough could be all that is needed. Buying a property that requires investment, additional maintenance, and upgrades to raise it to your desired standards might be worth considering provided that all of the upgrades do not put a dent in your pocket.

4.     Gather the highest down payment

If you are serious about purchasing the property, be sure to present an offer with the best earnest money deposit payment that you can easily manage. For most clients, gathering finances for a down payment might be difficult, so investigating whether you qualify for a down payment assistance program may be helpful. Also, if you decide to present your offer with the best earnest money deposit payment that you can manage, ensure to calendar any contingencies in place so that you can timely cancel and get a reimbursement of your deposit in the event that you elect not to purchase the property. Real estate attorneys in Orlando FL can help provide you with guidance when you are preparing an offer to purchase real property.

5.     Consider which contingencies matter most to you

You may hear that removing all contingencies from an offer will give you a competitive edge over other prospective buyers, but it is important that you consider keeping any contingencies in place that may be material to your success in the transaction. For instance, if you intend to finance the transaction, you may want a financing contingency in place, so that you have the right to cancel and receive a return of your deposit in the event you are unable to procure financing. Having a financing contingency in place will ensure, in most circumstances, that you will receive your deposit back in the event that you are unable to procure the financing. While removing a financing contingency may be more desirable to a seller, it is important that you evaluate whether you are able to afford risking your deposit in the event you are unable to timely procure the financing needed to purchase the property.

How can a lawyer help with the process of buying a home?

An Orlando real estate attorney is accredited to practice law with a focus in real estate transactions. Our professional Orlando Real Estate Attorneys understand all aspects of the property-buying process and can assist any lender, seller, or buyer, with their legal needs.

Some buyers hire a lawyer early in the procedure to deal with matters like reviewing the brokerage contracts with an agent, while others will wait until the before or after the purchase and sale agreement is drafted. It all depends on your preference. Whatever is your preference, Orlando Residential Real Estate Attorneys are here for you, every step of the way.

Bottom line

We have a team of experts at the Nishad Khan P.L, who can make the property-buying experience smoother, particularly for a first-time property buyer.