For those homebuyers who were waiting for the market to hit rock bottom; let me tell you it already did, and it is on its way back up. You may not find the same type of house you saw six months ago at the same price anymore…you’ll have to be realistic and, perhaps, even re-evaluate your search criteria. However, it is not too late.
Inventory is low but interest rates are also low. So as long as you make a strong offer, you should be in a good position. What is a strong offer? Well, there are various components to a strong offer but here are some that may be used in conjunction or independently depending on your individual case.
1) Large down payment
2) Large deposit
3) No loan contingency
4) No appraisal contingency
5) Not asking for any closing costs or other concessions
I wouldn’t recommend low balling in this market. Have your Realtor run a comparative analysis and offer your best price based on that. On the other hand, offering too high above market price doesn’t necessarily mean your offer will be accepted. The seller’s Realtor has also done a comparative analysis, and wouldn’t want to risk the deal going south when the appraisal comes in low. So, be strategic in your offer.