Today’s real estate market is highly competitive. If you want your offer to stand out, here are a few things I recommend.
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How to Stand Out from the Competition
Recently, the LA area has had a shortage of homes for sale. For sellers, this is good news, but for buyers, it means a lot of heavy competition when making an offer on a home. The limited supply of homes often even leads to bidding wars—when multiple buyers make offers on the same home.
So… how do you stand out from the competition?
Cash Offers Stand Strong
There’s no denying the appeal of a hard cash offer. But even if you don’t have that kind of money lying around, don’t despair.
Quite often, we see buyers asking the help of parents and other family members in this competitive market.
With the help of a family member, many young buyers are able to beat out the competition by putting forward cash offers. Of course, a mortgage can always be refinanced after closing, but this is a great way to secure an offer.
Offer Fewer Contingencies
No cash? You’ve still got options for presenting an appealing offer.
If you’re unable to pay cash, you can also write an offer with fewer contingencies and a strong down payment. Sellers want a sale that requires them to jump through as few loopholes as possible. They’re looking for a sure sale (hence the appeal of a cash offer), a sale that’s not going to hit any snags and fall through.
Fewer contingencies mean fewer potential snags along the way.
Make Sure You’re Preapproved
Probably the #1 most important thing you can do as a buyer, in any market, but especially a competitive market, is to get preapproved. It doesn’t take long: a phone call, a few minutes to gather up and fax over some paperwork, a signature allowing a lender to run your credit.
Getting preapproved shows sellers that you’re serious, that you qualify for a mortgage, and that you qualify for enough money to cover the price of their home. Given the choice between a preapproved buyer and a buyer who isn’t preapproved, chances are, the seller’s going to take the preapproved buyer.
Thinking of Buying in LA?
I hope keeping these tips in mind will help you as you enter our low-inventory, high-demand market. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.