Watch this video or read below!
Wondering how to buy a home in a competitive market? Hi, my name is Charisse Walker, owner of Chalker Properties and an Equity Real Estate Agent. Now let me tell you how to get your offer accepted in this Salt Lake market! Homes for $350,000 and under are tough to buy in this Salt Lake market. There is too much competition along the Wasatch Front and multiple offers are the result. So let’s talk about the three strategies to get you into a home!
- USE AN AGENT!! As a buyer, the seller usually pays the buyer’s agent, so why would you NOT be represented by an expert! Be aware though, the buyer’s agent may ask for 3% commission. Many Wasatch Front and Salt Lake listings are going for 2.5 and unfortunately some agents only show you homes offering 3%. This is actually in violation of your buyer’s agency agreement, so don’t work with an agent like this. I have committed myself to showing my buyers all homes out there along the Wasatch Front, no matter what! Agents won’t admit they do this, so talk with them and come up with a plan to ensure you see ALL of the homes available in Salt Lake, Davis, or Utah County that is listed on the MLS!
In addition, you need someone skilled at negotiation! I am one of 4% of agents in the country that has a certified negotiation expert designation. To help you understand, there are 9,400 agents in the Salt Lake market. So I am one of 376 that have taken advanced training to best negotiate on your behalf. Ask your agent to show you their designations!! I have tricks up my sleeve that some aren’t aware of because of my training! Sorry, I won’t share unless you’re my client!
- GET PREQUALIFIED FOR A MORTGAGE
Before you even begin looking at houses in Salt Lake, Davis, or Utah county, get preapproved for a mortgage. I’d actually recommend you get prequalified so you have already gone through the underwriting. This saves a lot of time, so some lenders can close in two weeks instead of four. This may be attractive to the seller and get your offer approved above others.
Also, an experienced and competent agent will not work with you if you are not preapproved because they don’t want to get throught the whole process and then find out you can’t qualify. This wastes your time and theirs, and gets your hopes up! A seller’s agent will not even look at your offer if you are not preapproved. Save yourself time and disappointment by speaking to a mortgage professional today to get the ball rolling. Just pause this video and do it
now! That’s how important it is.
Don’t know who to call? Contact me and I will give you options!
- MAKE THEM AN OFFER THEY CAN’T REFUSE
Once you are preapproved and found the home of your dreams, you are ready to submit an offer that they would have a hard time turning down. Keep in mind, there are four main items that sellers look at in an offer and I will speak to each of them: The 4 items are: Purchase price, Earnest Money, Closing date, and Concessions.
* Purchase price: Although this depends on the time of year and price of home, for the most part, the days of low ball offers are over, especially if your price point is under $350,000.
I have worked with several buyers along the Wasatch Front who put too much emphasis on the purchase price. Remember that this market is changing as much as 10% per year, adding up to an average of $20-30,000 in equity per year. Fighting over a few thousand in the big picture is pointless. In addition, for every $1000 in price it’s only about $6 per month more on a mortgage payment.
When listing a home, there are two thoughts, list the home low to get a lot of offers, or high and hope someone bites. Remember that when you are deciding a purchase price.
With that said, make sure your agent does their homework and looks at the comps and then discusses them with you. Offer a fair and slightly higher offer to be attractive!
* Earnest Money: This is important for two reasons:
a. to show good faith to the seller and if you back out after due diligence or FA and dates, they keep that money.
b. protects you and you could get the money.
It also goes towards your downpayment. Ideally it should be 1% of purchase price, but in this market $1-5000 is good, depending on purchase price.
* Closing date. If you can close quickly on a vacant home, the sellers would be attracted to your offer. Be flexible and make it attractive to the seller.
* Concessions. Sellers can pay closing costs and repairs, but this becomes less attractive. Talk with your lender about downpayment and closing costs options. It is possible to get into a home with no money down. Contact me to find out more if you are interested in these options!
Here are the three strategies again:
- Hire an agent
- Get Prequalified
- Make them an offer they can’t refuse
I wish you the best in finding a home and getting it under contract. If you have any questions or are considering buying in the near future, don’t hesitate to call me. I’m Charisse Walker and I’d LOVE to help you have a “chalkingly” amazing real estate experience.