Don’t get left at the starting line
By Dave Porter
In today’s red-hot market, with low inventory and multiple offers, buyers are only successful when they come to the table fully prepared. My advice for your clients—don’t just get pre-approved, get fully approved at the maximum limit they are willing to go and assemble all the paperwork that the lender needs for a loan ASAP.
I recently worked with a couple that found a home they wanted and came in with a massive earnest money deposit and a strong escalation plan. The 15 offers (YES, 15 offers) received on the house were reviewed by the seller and listing agent. The listing agent called the selling agent saying they would consider this offer once the financing contingency was removed. We couldn’t remove it that day so they didn’t get the house. In this market, buyers should be prepared to waive all contingencies to even be considered in a multiple offer situation. Make sure you discuss this with your REALTOR®, as there are several factors to consider.
What seems like plenty of time for a leisurely stroll has become a 100 meter sprint. Second place doesn’t get the gold, or in this case, the house keys.
Dave Porter is Director at PorterWorks and a Senior Loan Officer at HomeStreet Bank who teaches for NAR and Seattle King County REALTORS® 206-304-8228.