Getting Your Offer Accepted - Offering a Quick Closing & Deliver It! (Part 3 of the Series)
Denver Real Estate is experiencing a very unusual market right now. To illustrate what is happening we have
- Minus 10.9% less inventory than last year
- Last month we sold 17.7% more homes than last year
We are selling homes at a faster pace than we are putting them on the market. This fact is causing some buyers great distress, because each home they find, someone else is finding it too. It is not unusual to put a home on the market one day and have it under-contract the next! Buyers are competing with each other and yes, there is blood in the streets!
What is a buyer to do?
To be the Winning One, you and your offer must stand out in the crowd of other offers. Your offer must be strong in benefits to the seller, that includes any number of features.
One strong selling feature is to offer a short time to closing. The time from contract to closing is a very stressful one for the seller. Yes, it's tough for the buyer too, but in this instance we need to focus on the “other guy” and try to determine what feature in your purchase offer is going to really make his day.
Knowing you have a sure thing in hand is often better than the uncertainly of not knowing. It's really hard for a seller to make plans for the next move when they run the risk of a buyer who isn't 100% ready, willing and able to move forward.
Offering an early close means you and your lender have to be able to prove you can do it. This is where you really must be in sync with a good lender you can trust. I've talked about the value of using a good lender in previous blog posts.
A lender is an intricate role in the process. The contract you and the seller will sign has specific dates that must be met. If these dates aren't met by your lender he actually risks losing YOUR earnest money! Sadly, many lenders don't pay any attention to these dates. They just put your loan in process and hope for the best.
Obviously that type of lender is not someone you want to deal with!
If you want to get a quick closing on your transaction, you need to start before you find the home. Yes, before!
You have another challenge:
The average transaction from start to finish is 5-6 weeks from going under-contract. According to Ellie Mae a loan processing software firm that keeps statistics, the time it takes to process a loan has been increasing. This is a factor of the changing market coupled with the extra burden of financing regulations.
This process can be shortened up considerably with prior planning. Getting your documentation to the lender for a formal PreApproval is critical.
Once you find the home the next steps are inspection and appraisal. Typically in the past we would do the inspection before ordering the appraisal. Now, buyers are finding the fastest way to get to closing is to do these simultaneously.
Warning: Yes, this is risky, if the home has inspection issues that cannot be resolved it is possible you may have to pay for both an inspection and an appraisal on a house you end up not buying. Still ordering both the appraisal and the inspection immediately will help shorten the contract to closing time.
The key to making this work is having a good team that is working together to get the job done!
Being the One Winner in the home search contest requires attention to many details. I created this series of posts to help illustrate how to become that One Winner! If you are ready to begin your home search right now or in the near future, please give me a call. I look forward to being of service to you.