Today’s seller’s market is crazy, and it can feel daunting at times. You never know what to expect when you’re making an offer to buy your dream home. Buyers can feel frustrated with the amount of time and energy they are putting in, only to get their offer shot down and have to repeat the process over and over again.
Looking for a better way? Here are four creative and proven strategies we recommend to the families we are helping to make their offer compelling and stand out in a seller’s market.
1) Make Sure You Have a Proper Approval Letter from a Reputable Lender
What is one of the seller’s biggest fears with accepting an offer? For most sellers, it’s the fear of a buyer’s financing falling through and not getting to the closing table (that’s why sellers love cash).
Well, let’s remove that fear and position your offer to be good as cash. Here’s how:
First, understand the differences between a basic pre-approval and a full approval and how it strengthens your offer. The seller NEEDS the assurance of strong financing, and a proper approval letter is the best way to give it to them.
In a seller’s market, you will have to move fast once you find a home you love. This allows you to have a shorter financing contingency with more emphasis on the appraisal contingency time frame.
2) Strengthen the Financing Contingency
OK, now it’s time to get creative. Is there an option for conventional financing instead of other programs? The loan conditions and appraisal dynamics differ across loan structures, so when up against multiple offers, conventional usually wins. This is critical for first time homebuyers.
Can your lender offer you a Guaranteed Credit Approval? Axia Home Loans will gladly provide this fully underwritten credit approval as part of their Certified Homebuyer Program.
How do you provide the Seller an offer better than a cash offer? Along with the Guaranteed Credit Approval, Axia can issue a $10,000 Guarantee Certificate for the Seller. Axia guarantees the Seller an on-time closing!
The Guaranteed Credit Approval means that all the borrower related aspects of the financing have been approved and cleared by an Underwriter. This can be used for a primary residence with Conventional, FHA and VA programs. Verification of all income & assets is completed with only property related conditions remaining.
The Guarantee Program provides you with the fastest closing speeds and the most competitive purchase power as you look to make an offer. This $10,000 Guarantee Certificate offers the biggest benefits.
There is no extra charge for the Guarantee Program but not everyone qualifies. Your Axia loan officer will walk you through the process to see if the program is the right fit.
3) Your Lender Calls the Listing Agent
Sellers want to work with buyers they can trust and want to experience a painless on-time closing. That means your lender needs to open lines of communication with the listing agent to find out exactly what their finance concerns are and what the seller is most concerned about. Your lender’s call to the Listing Agent will make your offer stand out and may help it stay above the others. We will happily call the Listing Agent! Because Axia is the lender (meaning we process, underwrite, and fund our loans in-house), we are available to answer any questions and make sure the closing process goes smoothly.
4) Your Lender Writes a Buyer Highlights Note to the Listing Agent
This personal note provides some clarity around the strengths of the lender and speaks to the strength of the buyers and their financing. This note provides context for the Listing Agent and seller in addition to the typical pre-approval letter or Guaranteed Credit Approval certificate.
This note also bridges the gap if the lender can’t reach the Listing Agent or they aren’t answering their calls.
Use Every Advantage
You need every advantage you can get in this crazy market. These strategies go a long way in showing the seller that you’re willing to go the extra mile to purchase their home. They will make your offer stand out.
Your real estate agent and loan officer are your team – they’re here to help you make good decisions and make sure your offer is successful!
Get started implementing these four hacks by chatting with your local Loan Advisor.
Axia Home Loans Guest Author:
Rick Robertson, Certified Mortgage Planning Specialist, Axia Home Loans
NMLS# 120044
https://axiahomeloans.com/RickRobertson
Rick.Robertson@axiahomeloans.com
(425) 274-9523
Equal Housing Opportunity. Axia Home Loans is a registered tradename of Axia Financial, LLC. NMLS 27830.