If you blinked, you missed it. The Sedona real estate market went from a balanced market to a sellers market over the last few weeks and we're seeing many multiple offer situations in Single family homes within the city limits under $500k. If it's priced near the market value - there are people waiting for homes like this and they'll pounce on it. This quick post is to help give guidance on what will give you a leg up on competing offers.
Many times there are cash buyers waiting out there and cash buyers almost always trump any offers with a loan contingency. So, if you're needing a loan to buy a home - use the following tips to help compete against the others:
1) Get a prequalification in advance - This state mandated form shows that you've already spoken with a lender and that they belive you to be credit worthy. This form is MANDATORY when you submit your offer. An offer submitted without a prequal isn't a valid offer.
2) Do yourself a favor and get the prequal letter from a LOCAL mortgage broker. Big banks and out of area/out of state lenders tend to be slower and less likely to be able to get local appraisers and push the deal forward - so often times selling agents will give preference to offers with local, trustworthy mortgage specialists
3) Offer more earnest money The standard around here is 1-3%, but if you want it, consider putting more down as earnest funds (talk to your agent about the implications of this)
4) Inspection period - AZ state contract has 10 days in the boilerplate and many agents are asking for 12-15 days. Consider speaking with an inspector to find availability so that you can act quickly and keep a short inspection period.
5) Purchase price - If it's a good deal on paper and you view it and it works for you - consider offering at least full price when making an offer. If you're waiting to see the home because another agent is showing it to other buyers - take that as a clue and know that you're in competition with that buyer. I've seen homes go for up to $10k over list price for a well priced home in a good neighborhood. Of course, speak to your agent about this and make an informed decision.
6) Be here to see the house. I know - it sounds like a no-brainer, but offers that come in from buyers and agents that haven't been into the house will be viewed as a lower tier offer. At the bare minimum if you can't make it, have your agent view the home and FaceTime or video chat with you so that you can see the home prior to making any offer.
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