Three important factors for buyers to know!
There are three important factors for a home buyer to know:
1. If you are trying to buy a home, particularly in a strong sellers' market where multiple bids are the norm, you need a buyer's agent working with you.
In a strong sellers' market there is not enough inventory to meet demand. When a home is priced correctly it brings a number of potential buyers to the Open House. If the house is priced well within the market value range, there
are often multiple offers submitted immediately. Usually an offer has a time expiration of 24 hours or less.
As is often the case in our market, the first showings are scheduled for the Open House. If you go to an open house and want to put in an offer this is not the time to start looking for a Buyer's Agent.
Any licensed real estate person can write up your offer. You can even write up your own offer, but you won't have a knowledgeable REALTOR to advise and guide you. In a multiple bid situation, your offer is probably not going to be successful.
A good Buyer's Agent wants to protect your best interests. They will want to see the property so they can determine the market price for the property. In a situation where there are multiple offers, immediately after the Open House, there is no time for the Buyer's Agent to see the property. That means you have already put yourself in a negative position because the agent you call to write up your offer doesn't know what the property looks like.
Do yourself a favor; if you are looking to buy a home make sure you have already met a Buyer's Agent who is knowledgeable about the local real estate market(s) in which you want to purchase a home.
2. If you want your offer to be considered, it must be submitted in writing and be accompanied by proof of funds or a pre-approval letter. This is usually not a problem if you have a Buyer's Agent. If you have decided to forgo representation and are making an offer on your own, you need to understand that an Offer to Purchase is a written, legal document which is agreed to, and signed, by the Buyers and the Sellers. A verbal offer is not an offer. There is nothing that documents the agreement when made verbally. A Seller's Agent would be failing in her job if she advised her Seller to accept a verbal offer.
In addition, a pre-approval letter from a lender, or proof of funds available in your account(s), must accompany an offer. Sellers do not want to accept an offer, and take their house off the market, without knowing that the Buyer has already been given some approval that they can qualify for a mortgage.
For both the Seller and the Buyer, a house is an investment of hundreds of thousands of dollars. This is no time to do things haphazardly.
3. Time is of the essence. If an Open House occurs on Sunday, and you have been told that offers have already been received you must act quickly if you want your offer considered. Again, if you have a knowledgeable Buyer's Agent working with you, this will not be a problem.
The Buyers' Agent will go to the Open House, read the information about the property, ask the Seller's Agent any questions that need to be clarified, and come up with a market value price range so you will know how to make an offer. In a multiple offer, a Buyer's agent will advise you on making your best and strongest offer, and submitting it quickly.
These are three important factors for buyers to know. Bottom Line: Find a great Buyers' Agent with knowledge of the local market(s). Meet that person in advance of starting your home search. Make sure you feel comfortable with the person.
I have chosen never to represent the Seller and the Buyer in the same transaction as I do not believe that I would be able to fulfill 100% of my responsibilities to either party. When I represent Sellers, I often refer buyers to Christine Smith, a buyer's agent with Buyers Brokers Only. Christine does an outstanding job representing her buyers. She is thorough, knowledgeable and friendly. You can count on Christine's integrity to look out for your best interests. The fact that she has a law degree, as do all of the agents with Buyers Brokers Only, is an added bonus in the knowledge she can share about the real estate process.
Don't overlook the three important factors for a home buyer to know.
If you are thinking about selling your home, please give me a call at 781-883-3764. I will be happy to provide you with a complimentary market analysis so you will understand the market value of your home. Let's talk about how we can work together to get your home sold!