~ By Mike Galinac, Exact Match Properties ~
As of the time that I am writing this, the Michigan real estate market, as well as throughout the rest of the nation and beyond, is severely imbalanced, to the point where every new listing that is priced fairly is being immediately bombarded by a never-ending parade of showing appointments, typically resulting in several offers within a day or two of the home hitting the market. Offer deadlines are common, after which the seller and the seller’s agent sift through resulting offers and choose the one that is most appealing.
Perhaps some of you have submitted one of those offers, on more than one occasion, only to get bumped by somebody else’s offer and be left feeling defeated. I realize that it’s very disappointing to go through that process, so I always try to prepare my clients in advance. In this series of posts, we’ll look at some of the ways that you can be better prepared to go to battle with the other bidders and give your offer the best possible chance for success.
Tip #1. If your offer to purchase is going to be based on mortgage financing, your pre-approval (or approval) letter could make or break you. The lender you choose must be highly trusted by you and your real estate agent. Do not simply apply online with a company that you have no experience with or one that is not even located in your state. The approval letter must be dated within 30 days of your offer and should provide information letting everybody know that your file has been reviewed and underwritten, not just based on a phone call. I recommend having your lender issue a letter that shows the highest amount that you would qualify for, not one that is tailored to your offer amount. Why? Because you need to look as strong as possible and not like you’re stretching your financing ability to the max. If all else is equal between two offers, and I’m representing the seller, I would advise the seller to choose the offer with the higher approval limit. Lastly, don’t choose a lender who is not readily available, or will only return calls or emails between 9:00 – 5:00, M-F. Real estate deals happen 7 days a week and often in the evenings!
There will be more tips to follow. If you have any questions, or you’re looking for a highly experienced real estate broker to assist you, please don’t hesitate to contact me. Mike Galinac
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