How Can Buyers and Sellers Succeed in the Current Market?

LISA BILY

Right now, it really is like the Wild, Wild West in real estate; however, there are things both buyers and sellers can do to improve their chances of getting the most from a transaction.

For buyers, it is imperative to have some sort of an advantage in order to win a bid on a home, especially if you are not a cash buyer. Buyers are giving up their due diligence periods, rights to inspect, and also finance and appraisal contingencies, in addition to paying some cash out of pocket over appraisal, if there is one. Don’t give up all your rights! There are certain things you can do to protect yourself and still buy a home you love.

For example, there is a way to safely remove your financing contingency without jeopardizing your earnest money. I work with a few lenders regularly who can help you do this. To help make your offer on any new home more competitive, you could have your loan reviewed and approved by the underwriting department of your lender prior to making an offer. This process takes ten to fourteen days; however, it would let any seller and sellers’ agents know your loan has already been approved. This can give you an edge over other offers when competing for the same home as it is as if you are making a “cash offer” on a home. There would be no finance contingency required. You are already FULLY approved. Your lender may still require an appraisal contingency but some lenders can get this done now in ten days or less.

There are some additional documents you will need to submit to your lender, but it is totally worth the time and energy it may take. Once your loan has been approved by underwriting, your lender will send you a new letter stating you are now formally approved by underwriting and the finance contingency can be waived at your discretion.

For sellers, it very important to have your home prepared for sale in order to maximize your profit, and not just cosmetically! If you are made aware about a potential problem before you are under contract with a buyer, you can choose to have it fixed, repaired, or replaced, which may prove less expensive than contributing thousands to the buyer’s closing costs. (Ask me about a pre-market inspection as this is something I offer my clients.)

Other than the price, here are six things sellers should consider when reviewing an offer: the amount of earnest money; the contingencies (financing, appraisal, etc.); how large the down payment is; all-cash offers; the closing date; and whether the buyers are amenable to a temporary occupancy agreement after closing (if you need one

The professional life of Tucker resident Lisa Bily includes over twenty-five years of sales and marketing experience in different fields, including real estate, the music industry, commercial and public media, and product marketing. She is currently a Realtor with Palmer House Properties, where she guides her clients through the real estate process from first consult all the way to closing. You can contact her at 404.326.5007, or through her Facebook page.