How to Beat the Competition

We’ve been talking about the Sedona housing market and how low the inventory is right now. Especially if you’re looking in a popular neighborhood, you can expect to compete against several other offers. These are some additional ways to beat the competition – building on what we reviewed a couple weeks back.
 
It can be very stressful to find your dream house, in your dream neighborhood, and then have to outbid other people to actually buy it.
 
Your agent can help you with a plan to prepare the winning bid. Here are some strategies that can help set you apart from the competition in a seller’s market.
 
Get Pre-Approval rather than Pre-Qualification
You will need a pre-approval letter during the loan document preparation process, so you may as well get it sooner than later. A reputable lender who has reviewed your documentation and will provide a pre-approval letter may help separate you from your competition, as well as speed up the purchase if you do win the bid.
 
Cash is King
You may have heard this old adage, and it has never been truer. Sellers will almost always choose the cash bid, it can make the closing happen faster, and will cost the seller less in closing costs.
 
Conventional financing with a high down-payment is a close second. This also costs the seller less during closing. FHA or VA financing is burdened with requirements that make the process more costly and time-consuming.
 
Decide What You Want to Pay
After considering all the variables, you must decide what you will offer in advance, and stick to that. Buying a home is an emotional process, and it’s made more stressful by a bidding war. Don’t end up offering too much, only to regret it later.
 
Earnest Money
Showing the sellers your commitment with a higher earnest deposit may help complete the purchase.
 
Keep the Seller in Mind
A seller’s market is not the best time to ask for favors. For instance, don’t ask the seller to pay for some of the closing costs. When you decide upon a closing date, choose one based on what the seller wants.
 
Keep in mind that your agent can help you every step of the way. You’re not alone in this process! The agent will also be able to think of strategies that you may not be aware of so that you can beat the competition and land your dream house.

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