Making Your Offer Stand Out in a Bidding War

Making Your Offer Stand Out in a Bidding War

Make no mistake about it.  It’s a seller’s market.  In July 2020, there was an average of nearly three offers per house sold, and 68% of homes were on the market for less than a month, according to the National Association of Realtors (NAR).   The current combination of low inventory, coupled with all-time-low mortgage rates makes this an ideal time to sell your home.

 

But what if you’re  in the market to BUY a home?  “With multiple-offer scenarios becoming the norm rather than the exception, it’s important to make sure that you present an attractive and competitive offer to ensure you don’t miss out on your dream home,” advises Beth Albanese, sales associate with ERA Justin Realty.

 

So what makes some offers stand out from the rest?   Here’s four things you can do to make a solid and competitive offer.  

 

Get Pre-Approved

Buyers who are pre-approved are a step ahead of those who aren’t. “Having a pre-approval letter shows a seller you’re serious AND qualified,” says Beth.  “This can definitely tip the scales in your favor with a seller.”  But according to a recent survey* only 52% of active homebuyers obtained a pre-approval letter BEFORE they began searching for a home.  

 

Present Your Best Offer

This is not the time to negotiate or come in under asking price. A buyer considering multiple offers will most likely eliminate these.  Rather, work with a trusted real estate professional who can provide insight into what the bid trends and final sale prices are in your area, and will use that information along with your budget to help you determine your best offer.

Be Ready to Act Quickly

If you really love the home, chances are that someone else does too.  “With houses selling faster than ever, you may not have much time to think about it, and it’s important to make sure your bid is in on time to be considered,” Beth advises.

 

Work with a Trusted Real Estate Professional

ERA Justin Realty has been the Rutherford market leader in closed sales for 19 consecutive years.  If you’re looking to purchase a home this fall and need expert guidance to make the best offer possible, contact Beth or any of our knowledgeable REALTORS at 201-939-7500.

 

 

Renting or Buying:  What’s Right For You?

Is it better to rent or buy a home?   Unfortunately,  there is no “right” answer --  rather, it depends on many factors and differs from person to person.   Regardless, it is a major decision that warrants careful thought.  

Grace Tirrito, sales associate with ERA Justin Realty, suggests that you make a list of your priorities, financial goals, and personal preferences  when making the decision to rent or buy.  “Despite popular belief, renting doesn’t always mean that you’re ‘throwing away money’ and buying doesn’t always ‘build wealth’,” she explains.  “In reality, the decision is much more complex.”  

Why RENT?

Flexibility - Do you have a job that requires you to move around every few years?  Are you not sure about which neighborhood you want to live in?   “Renting a home makes it much easier to move because you don’t have to go through the home selling process,” says Tirrito.  “if you need the flexibility to move easily, then renting is the best choice for you.”  

Fixed Monthly Expenses - When renting a home, your monthly expenses are fairly fixed -- you know what you owe each month for rent, utilities, and renter’s insurance.  When you own a home, there’s the chance for an unexpected expense -- like replacing the furnace, or repairing the roof.  

Limited Maintenance - Depending on your lease, most maintenance is the landlord’s responsibility.  You might need to mow the lawn, but you’re generally not responsible for major home repairs or maintenance.

Biggest con when renting?   Your landlord is in charge.   You may be faced with a rent increase, limitations on what changes you can make to the interior, or you may be asked to leave when the lease is up.

Reasons To BUY 

Build Equity - Buying a home is a financial investment and every time you make a mortgage payment you are building equity in that investment.  You can turn that equity into cash if you sell the home or refinance it.

Stability and Community - Owning a home and being connected to a community has many benefits for those looking to raise a family and establish long term relationships with friends. 

Freedom - Owning your own home gives you the control to update and renovate as you see fit.  Update that kitchen, refinish the basement, or add a backyard pool.   

Whether to rent or buy a home is a major decision. Some people buy homes when financially they’d be better off renting because home ownership is important to them.  Conversely, some people are habitual renters because they value flexibility, even though they’d amass more equity long term if they bought a home.  If you are facing this decision, working with a trusted professional like Grace Tirrito can help.   To connect with Grace, or any of our experienced Real Estate Agents, call 201.939.7500.

 

What Not To Do While Waiting To Close On Your Home

What Not To Do While Waiting To Close On Your Home

When going through the home buying process, there are a lot of mishaps that can delay or even completely halt the process all together. Sometimes uninformed buyers inadvertently make purchases or changes that creditors or lenders see as warning signs and can or will delay the buying or closing date of a home. Catherine Nimmo, ERA Justin Realty Sales Associate explains, “Buying a new home hinges on several key things falling into place: finding the right property, negotiating a price you can afford and securing the financing to pay for it. Many homebuyers successfully navigate all three criteria only to make some critical missteps prior to closing the deal that can jeopardize the deal.” Here are a few tips on what not to do while waiting to close on the home you are buying. 

Don’t Apply for a Credit Card

For most borrowers, using their existing credit card for minor expenses will not affect them, but opening a new one can absolutely delay closing. Restrain from saving that extra 10-15% off at a department store applying for their card. 

Don’t Make Any Major New Purchases on Credit

Now is not the time to go out and purchase a new car or, as excited as you are about moving into your new home and decorating, do not purchase major items, such as appliances. Wait until the deal closes before finding that new fridge. 

Don’t Change Jobs 

Some buyers change jobs without letting their lender know because they think that if it’s a better salary, it won’t matter. Wrong. Most lenders require 30 full days of paystubs, so changing jobs will delay closing until the 30-day paperwork is obtained. And in some cases, it can even kill the deal altogether. 

Don’t Fall Behind On Any Payments 

Nothing is more critical to your loan than your FICO score. It affects your rate, the loan program, and the cost of any mortgage insurance. Make sure you continue paying any credit card bills regularly and stay current on car or other loans. 

Don’t Move Money Without A Paper Trail

When a lender pre-approves you, the approval is based on the current state of your finances. You want to maintain that state at all costs. Sometimes buyers make the mistake of shifting their money around to better position themselves, but this is a mistake. If a lender sees you moving money around various accounts, you will need to give them a detailed accounting of why you moved it. 

Determining whether you’re ready to buy your first home can be intimidating. Very few buyers, especially first-time buyers, are housing market experts or have read up on mortgage interest rates until it’s time to take the plunge. No matter how uncertain you may feel at any point on your journey, working with trusted professionals, such as Catherine Nimmo can help you make the right decisions. To connect with Catherine, or any of our experienced Real Estate Agents, call 201.939.7500.