If you are looking to purchase a new home, it is essential to understand how to reach the bottom line that both you and the seller agree upon in order to present an offer that wins.
Here are 3 strategies to winning a purchase offer from the seller:
1. Appraisals and Inspections
Both FHA and VA loans require intensive guidelines when it comes to the appraisal and home inspections. The appraiser is, in addition to providing the estimated market value of the home, required to perform certain, specific minimum inspections. While these are not as intense or detailed as a regular home inspection nor do they act as a substitute, they are required.
Here is an additional rule to follow in order to help determine necessary repairs on a home: is it save, sound, and sanitary? Those guidelines should give you an idea on what to expect when it comes to necessary home repairs. Additionally, it is key to know what should be repaired before you begin to craft your offer to the seller.
When making an offer to the seller, you must include the type of financing you are securing to purchase the property. Additionally, a VA or FHA loan requires you to note the additional financial and performance obligations these types of loans place upon the seller. Both the VA and FHA loans have non-allowable fees, which, as the buyer, prevent you from paying them, requiring the seller to pay them instead.
Be sure to have an itemized list of the lender’s non-allowable fees so that you can consider this when making your offer. It is important to consider these items when making your official offer to the seller as any non-allowable fees might change what a seller considers a good offer.
3. The Importance of Financing Approval
Two identical offers, save for one being pre-approved and the other being approved, will always result in the approved offer being accepted. It’s extremely important to have a letter of approval from your lender before you make an offer. This shows that you are ready to play ball and are serious about the offer you are making on the home.
If you are in the market to purchase a new home, today’s market environment is very promising and offers many opportunities. I would be glad to help you.