According to the National Association of Realtors, 2013 could be the best real estate market for home sellers that we've seen in years. Home buyer demand is outpacing the supply of homes for sale in many areas of the country. Great news if you're a home seller - not so much, if you're a home buyer!
Here in Wilmington, we still have a good amount of home inventory, but prices have been increasing. Median home prices during the first quarter 2013 were 21.3% higher than the same period last year. There may be plenty of homes on the market, but as prices rise, fewer of them may be in your price range. And because real estate investors target lower-priced homes that would make profitable rentals, you can find yourself competing with cash buyers in addition to traditional home buyers.
This means that you need to be ready to compete for the home you want to buy. One way to accomplish this is to know what makes a purchase offer appealing to a home seller. I have a few strategies to help you!
1. Have a mortgage approval letter in hand, ready to submit with your purchase offer. An approval letter from your lender declares that your loan application has been processed, verified and approved by mortgage underwriting. It is more binding than a pre-approval or pre-qualification. It's about as close as you can get to being a cash buyer without having your own cash.
One piece of red tape: the home must meet the appraisal guidelines to support the loan. Fortunately, with home prices on the rise, this isn't as daunting as it used to be.
2. Be aware of current market conditions and make your best offer first. If you are up against another buyer for the same home, you may not get a chance to offer more in a second round of negotiation. This doesn't mean you should overpay, however. I can help you determine if the asking price on a home is fair.
3. Keep your contingencies to a minimum. You need to have the right contingencies to protect yourself, but going overboard can cause your offer to appear to be more hassle than it's worth. Make it easy for the home seller to say "yes" to your offer.
4. Be open to the home seller's requests. Sometimes you have to give a little to get a little!
5. Work with an experienced real estate professional who will walk you through the fine points of contingencies and negotiations, and who will put you in a good light with home sellers and their agents.
Buying a home in Newark or Wilmington doesn't have to be stressful! If you are a first-time home buyer, I strongly encourage you to attend a free home-buying seminar so you can immerse yourself in good information. The next one is coming up in Newark on April 20! See the Registration Page for a list of upcoming dates and locations.
Contact me for expert help with your home buying questions!
Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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