Home Buyer Checklist: What to Look for in an Open House

Attention Home Buyers - Strategies to Get Your Offer Accepted

by Sam Paltikian, Realtor-Associate® (RS-79996)

OahuHomes808.com

Buying a home is very competitive due to low inventory and buyers competing for the same properties. When you find a home you like, make a strategic plan with your real estate agent to make your offer enticing and too good to pass up.

A few items to consider include:

• How long has the property been listed? Properties listed within the past week means it could be competitive, as it is still fresh. Longer days on market typically has less competition, since potential buyers have already seen it, and did not want to make an offer.
• Study the market pricing of sold properties in the area, over the last 6 months (check out the interactive below!) When you apply for a loan, an appraiser will determine the market value by reviewing recently sold properties in the area similar to the home you are purchasing to determing the value of the property. Think like an appraiser!

• Offer price and possible escalation clauses. After you decide the price you want to offer, discuss escalation clause details with your real estate agent. An escalation clause is when the buyer agrees to increase the purchase price by a set amount over other competing offers. But be careful to consider a maximum limit, as you need to be able to afford your monthly payments, should your offer be accepted.

• Another type of clause to consider is an appraisal clause. Buyers can make high offers, over the market value, but the appraisal could come in below the offer price. You can consider offering an additional cash down payment to cover the gap of appraisal value, and your offer price. This is often attractive to sellers since the appraisal report comes in about half way through the transaction and they don’t want the buyer to cancel if the appraisal come in short.
• Location is still one of the most important driving factors, so take time to consider if the home is really best for you and your family. If the property is in an ideal location you really want, be aggressive, as it may take much time before another property in that area comes up for sale.
• Think about cost savings to the sellers. The customary cost the seller has to incur are the termite inspection ($400-$800), association documents ($300-$900), and cleaning ($400-$700). If you can help pay for some or all of the costs for the seller, this makes it easier from them to select your offer over others.

Buying a home has several factor to consider, and best to utilize your resources, with your real estate agent and lender. Both are licensed and trained professionals which have access to market data and trends. Before getting started on making offers, take the time to have a meeting with each of them separately, to have them explain and guide you through the process. An educated buyer typically makes the best decisions!