What happens when your borrowers are out scouting neighborhoods — in person and on online — and they realize there's not much to look at? Finding few options, or maybe even nothing for sale in their price range is increasingly common for many homebuyers.
The number of homes available to first-time homebuyers has dropped 12.1% since 2012. But hang in there. Here are some tactics your borrowers can employ right away.
1. Offer a higher price — within reason
It's supply and demand 101: Prices rise when inventory is low and demand is high. "I recommend my buyers to go in with their best and final offer immediately," says Danielle Schlesier, a Boston, MA, real estate agent. Offering a higher price can be tricky when buying a home. You'll need to make sure your borrowers can afford a bigger mortgage.
You could encourage your buyers to offer more money upfront. "Consider making a bigger deposit. Instead of an industry standard $1,000 to bind the offer, consider $5,000," says Schlesier. "This shows the seller they're serious, and it may make your offer stand out."
To help expedite the process, try scheduling a preliminary consultation with your mortgage lender to first understand what type of loan you may qualify for and for leads on the best contractors in your area.
2. Act quickly, but practice patience
Landing a home in a competitive market can mean a lot of "hurry up and wait." Schlesier advises her clients to "be ready on a moment's notice to make an offer on hot new listings." On the other side, although your buyer’s need to be ready to pounce on a home as soon as it becomes available, the deal may not be right for them. Or their offer may be turned down. Reminding your clients of patience in the process is essential to the roller coaster that is home buying.
3. Be flexible on closing dates Besides being fast on the offer, they may need to close quickly too. If the seller needs a quick closing because of a job relocation or divorce, their offer may have more weight if you can sprint to the closing table. Luckily, with Movement’s seven day processing goal*, this is usually an easy accomplishment. Your qualified borrowers can also get an underwriter pre-approval in as little as one business day* to really make their offer stick. Then, when they win the deal, you will have everything in hand to start processing, underwriting, and preparing for the closing table. 4. Write a great offer letterMany sellers, especially those who plan to keep in touch with their neighbors, care about who will buy their home. So have your borrowers craft a letter explaining who they are and why they love the house and neighborhood. Sellers love a good story. They want to see their pride and joy go to someone they like. With these home buying tactics, your borrowers are sure to stand out against the competition. |
