With so many houses available today, competition is heating up among homebuyers. In fact, 55% of August 2020 home sales resulted in a bidding war AND 69% of homes sold were on the market for less than one month!
With that said, it's important to be prepared for a bidding war, especially if you've found your dream home. Being prepared means you'll be able to move quickly and confidently in today's competitive market.
Below you'll find three important tips to help you prepare for a bidding war.
Don't forget to check out our recent blog on how to write an award-winning Real Estate Offer Letter.
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Some Highlights
- With so few houses available on the market today, being ready for a bidding war is essential for prospective homebuyers.
- From pre-approval to making your best offer, here are three tips to make sure you can act quickly and confidently when you find the perfect home.
- Reach out to a trusted real estate professional today to be sure you have the guidance you need as the competition for homes heats up this season.
- Reach out to Greenway Mortgage for your FREE pre-approval and for any questions you may have about the mortgage process.
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Explain why you want the property.
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Tell the seller why you love their home and why it’s an excellent fit for your family. For instance, if the seller has lived in their home for 20+ years and raised a family of their own there, they may be focused on selling their home to someone who will take good care of it.
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During your walk-through take note of some items in the house. For example, did you love their garden? Was your alma mater’s flag hanging in the garage?
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Big or small, by sharing a common interest in your letter, you’ll make yourself more relatable.
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Don’t go overboard – keep it short and sweet! The key is to be sincere in a sentence or two.
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In your letter, make sure to include your offer price, earnest money deposit, loan status and the amount of your down payment.
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Having a pre-approval letter is more important than ever.
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A pre-approval letter is an official letter from your lender (Greenway Mortgage) that provides documentation of exactly how much you are approved to borrow.
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Note: A seller may not consider your offer without a pre-approval letter.
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Sellers look for buyers that are pre-approved because it gives them confidence that you can secure the financing needed to complete the home purchase.
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Contingencies are the conditions that must be met by either the buyer or the seller before the home buying process can move forward.
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Common contingencies include securing financing for the property, a home inspection and home appraisal and sale of the buyer’s existing house.
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Be transparent about your expectations. Include the proposed closing date.
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Before you deliver your award-winner letter, make sure you proofread it thoroughly. Mistakes may make the seller think you don’t take your offer seriously.
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Remember what we said before? Short and sweet. No one wants to read a lengthy letter of your personal history.
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Keep your letter to one page, even if you have to make a few edits.
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Focus on a few of the most important reasons why you are the BEST buyer for the home.
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Don’t forget to close with a thank you!
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Finish the letter off by expressing your appreciation that the seller is considering your offer and reiterate why you are the perfect buyer.
Private MI is there only as long as it’s needed. When the balance on the mortgage reaches 80% of the home’s original value or its current appraised value, the homeowner may request cancellation of their mortgage insurance.
To cancel your MI, you should first gather some basic information for your mortgage lender, including:
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Any names on the loan
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Social Security numbers
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Property address
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Loan number
Yes, when the mortgage balance reaches 78% of the homes original value and all payments are current, the lender is required to cancel the mortgage insurance automatically.
You may be eligible for a refund of the mortgage insurance premiums when the MI policy is cancelled. It depends on the type of MI product you have and other criteria.
THE STORY
Many of you may remember the 20 intact-male cats who were left outside of our door of the Monmouth County SPCA a month ago and the 30 other cats who were found and rescued. These poor cats, scared and confused, were living in unimaginable conditions.
Thankfully, the MCSPA’s hard-working Humane Law Enforcement Officers worked day and night on this case to recuse each and every cat. A huge shout-out to them for all their hard work and dedication. They handled the rescue without skipping a beat and thanks to them, all 50 cats are comfortable and have every chance of a happy, healthy life. You can follow up on the full story here. After hearing this news, Greenway Mortgage was eager to step in and help.
Greenway made a special visit on October 29th (National Cat Day) to the Monmouth County SPCA located in Eatontown, NJ to present a donation of $3,500. We even toured the MCPCA to check out all the adorable cats and kittens up for adoption and fell in love!The MCSPCA is currently launching an Adopt One, Get One NO FEE promotion for all the cats from the hoarding situation, as well as their growing teenage population of kittens. To learn more about how to adopt, click here. They have MANY cats (and dogs) who need loving homes.
RESOURCES:
- Learn More About the Monmouth County SPCA here.
- Make a difference! Donate today. Your donation will care for thousands of homeless, abandoned and abused pets that come to the MCSPCA every year. A little goes a long way! Click here to make a donation.
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Finding a house you want to buy is very exciting! The house you like may appear great in photos and it feels right when you visit. However, many houses hide darker secrets that might not be immediately obvious, especially some older homes.
Older homes can be high on charm and built to last, but they may also be hiding unexpected secrets. There’s no need to worry! A little vigilance before you buy can prevent you from falling into an expensive trap.
Here are some things to watch out for when you’re on the hunt for an old charmer!
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