The San Diego spring home-buying season is in full swing. But there is a tight supply of homes for sale. When you find the home you want, you will likely be up against competing offers. Sadly, bidding wars leave many would-be owners without a house.
Here are a seven important tips that can help you win:
1. Offer Full Price or More. The seller getting his asking price is a huge consideration! Remember, in a housing market of escalating values today’s price for any home will likely be higher anyway in 60 to 90 days … this is a wait that can cost you even more money.
2. Don’t ask the Seller to Pay Your Closing Costs. If you are short cash for closing costs, your lender may offer to pay those costs for you if you agree to a slightly higher interest rate.
3. Impress the Seller with a Large Deposit. Sellers really are impressed by a large good faith deposit (closer to 3% of the purchase price rather than the typical 1%). That money just goes to pay your own closing costs anyway but it shows the seller that you are committed!
4. The Closing Date You Write in Your Offer Should Match the Seller's Preferred Date. Your agent should ask the Seller's agent about the SELLER's preferred date of closing. Not all sellers are in a hurry … some need a little extra time.
5. Allow the Seller a Couple Extra Days Possession After Closing. This is a gesture of thoughtfulness that can be endearing to a seller which also can serve to lower their stress.
6. Show Them the Money! Always include with your offer to purchase a statement of direct underwriter pre-approval and your proof of down-payment funds. This tells the seller that you are a serious buyer.
7. State Up Front That You Will Not Nit-pick Items Found In Your Home Inspection. Provide a statement that you will not quibble over minor items found in your inspections or try to re-negotiate the price downward, but that your focus will be only on surprise structural or mechanical defects.