Jim Valentine on Real Estate
As the market picks up you will find more people competing for the property you want to buy. There are a few things that can separate you from the rest of the buyers depending on your situation. If you can buy with cash you will usually be in a better position than someone who has to get a loan or sell a home to buy. Getting a loan for the purchase money, or getting your equity out of your house to buy another home isn’t a cash offer even though the seller gets cash at the close of escrow. A cash offer means you have readily available cash and can prove you have it.
Cash doesn’t always mean you can get a “cash price.” Sometimes it simply gives you the advantage to have your offer accepted over others. Not having cash doesn’t mean that you can’t compete. Some sellers want to sell to a family that will appreciate their home like they did, or to give a family the opportunity to have a home. Some sellers want to give a family an opportunity and are willing to take a bit of a risk along the way. They may get a bit of a higher price going that route, but that isn’t always the cause of their motivation.
If you think you have competition for the home you want to buy do as much research as quickly as you can in advance of writing your offer. That will enable you to write a super clean offer, an offer with fewer conditions that can put off a seller by possibly stalling a sale. For the things that you can’t get done in advance of writing an offer, shorten the time for their approval after the offer is accepted. If you can get done in 10 days what others think they need 21 to do you will have some advantage.
You can satisfy some of your questions about the property when you view it. If you have further questions, schedule another viewing and look at specific things. You might be able to get the Seller’s Real Property Disclosure (SRPD) from the listing agent prior to making the offer. You will have it back right away with your offer, but if there is something that is disclosed in the disclosure it is best to have it in advance to determine if you need to follow up on it.
Don’t sell yourself short in your zeal to get the home, but, likewise, don’t go too far the other way. There may be things wrong with the home that the seller is not aware of. Most sellers are very surprised when inspections reveal deficiencies. They live in their home and are just used to it being the way it is, not necessarily looking closely for maintenance issues. Build in your safety checks to protect your investment so you don’t have their problem become your problem. If a seller balks at inspections as they insist on an as-is sale then maybe there is something you are better off avoiding.
Don’t get “auction frenzy” if there is competition. Make sure you understand why you want the home, what it will do for you and your family, and maintain a good perspective on how it fits in the market. Is it unique, or will others with similar features become available in a reasonable period of time. This will help you decide on what it means to you to live in that home and enjoy the lifestyle that it offers.
Don’t think that you can’t compete. Work with your agent to make the best offer you can. This is Nevada real estate and we know in Nevada “You can’t win if you don’t play!” Get your offer in, make it attractive, and hope for the best. Real estate is more about the people than it is about the property and money. You and your agent are factors – play smart and expect the best.
Put yourself in the seller’s position and write accordingly. They may surprise you with what really motivates them.
When it comes to choosing professionals to assist you with your real estate needs… experience is priceless! Jim Valentine, License No. BS-03481, RE/MAX Gold Carson Valley 775-781-3704. dpwtigers@hotmail.com.