Thursday, September 13, 2012

The Market Gets Competitive for Home Buyers

The Market Gets Competitive for Home Buyers

The Market Gets Competitive for Home Buyers
More home buyers are finding they’re losing their power position in the real estate market and that when they submit an offer for a home, they may not be alone in the bidding. In fact, buyers who submit low offers may not even get a courtesy of a callback nowadays.

One Florida couple says they put in seven offers on homes over two months — most at or above asking price — before they were finally able to get a $365,000 Sarasota home.

A drop in the inventory of for-sale homes around the country is prompting more competition among home buyers. Inventory in June is 24 percent below year-ago levels.

"I've had listings get 45 offers," Sin-Yi Chao Lambertson, a real estate broker in Glendora, Calif., told Money Magazine.

Money Magazine recently offered potential buyers the following tips if they want to get the winning bid on a home:
  • Get pre-approved, not prequalified: Pre-approval for a loan based on a buyer's credit, income, and assets is viewed as better than getting pre-qualified, which is just an estimate of how much that buyer may be able to borrow.  
  • Find an experienced REALTOR®: Money Magazine advised home buyers to find a real estate professional who knows how to handle multiple-offer situations and can advise how much to offer and help buyers determine if they’re getting a home at a fair price. 
  • Watch the contingencies: “The best offer isn't always the one with the best price," says George Miller, a Sarasota, Fla., real estate agent. Buyers who put in too many contingencies with their offer may lose out.
comments:

Deschutes Realty
I agree with George, sometimes the higher offer won't appraise or the contingencies are not timely, it's up to the Seller which one to decide upon after consulting their hopefully-VERY EXPERIENCED realtor.
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