The Madison Wisconsin real estate market, like many areas across the nation, has experienced double-digit increases in the median home prices in recent years. The Spring real estate market in the Madison area is typically the busiest time of the year for home sales. As we emerge from the winter weather and we approach the end of the school year many families have their minds set on making a move at this time.
This Spring's real estate market may be even more intense than usual this year. I anticipate that there will be a significant number of additional buyers entering the market than is usual. The record low interest rates that we've enjoyed in recent years appear to be moving upward and although the interest rates are still extremely favorable, the overall trend, most analysts would agree, is for a modest increase in the interest rates. This could prompt a number of Buyers who were "fence sitting"in to to action this Spring.
So, perhaps you're a Buyer who's been looking for quite some time and have just found the perfect home. It could be a new listing that's just come on the market, in the area you want, with all the features you want, and it's in your price range. It's your lucky day! But you know that there have been other people who have looked at the home too, and you believe that they may be interested, too. So how do you proceed in a way that will make that house your home? Here are some strategies that have worked for my Buyers in the 18 years I've been selling real estate in the Madison area and I'm sure they'd work in other areas too.
1. Accomodate the seller's needs.... Have your agent contact the seller's agent to find out more about the seller's needs such as the preferred closing date and occupancy date, the personal property included in the sale, any other special considerations. See if your agent is able to find out if there is anything the sellers specifically want or don't want in an offer.
2. Personalize yourself....consider including a personal note telling the seller something about yourself. Explaining things like where you work, the number of your children and their ages and why you like the home often go a long way to make the seller feel that they would be selling to someone who'll care for the house and appreciate it like they did. A word of caution with this, don't make the note too "schmoozy". Sellers know when someone is not being real with them and the result could be the exact opposite of what you want. Don't ever be rude when viewing the house. Never write something insulting like "we really want to redecorate the place" or "we can't wait to remove that out -of -date wallpaper". Remember this is somebody's home and tone-down or eliminate those type of comments. This should be obvious, but if a seller remembers and likes you your chances are improved. So, always be careful of your choice of words when you're in the home and when you write a note to the seller!
3.Write a "clean" offer.... If you have a home to sell, investigate the possibility of securing a "bridge loan" ahead of time, before you write the offer. Remember if there are multiple offers on the home, your having a home-sale contingency pretty much makes you dead on arrival. A "bridge loan" is a type of temporary financing that allows a buyer to obtain a mortgage on the new home without having the old home sold yet.
4. Have short timelines for all contingencies....you're better able to compete with contingencies if they have short timelines. Offers with contingencies such as home inspections fare much better if their timeline is 3-5 days rather than 10-21 days. The same is true for practically all contingencies.
5.Get loan pre-approval.... not just prequalification. Many people use these terms interchangeably but they are certainly not the same. Preapproval means you've been personnaly approved for the loan and that the credit report and other information that you provided to your the loan officer has been verified and is acceptable. All that remains to be done typically is the appraisal and loan underwriting. A prequalification means basically that you appear to be qualified for the loan. But many things relating to you and your credit worthiness and employment have not been verified. So put yourself in the seller's shoes. Which is mostly to offer the greatest assurance to the seller that the sale will go through, a prequalified loan or a pre-approved loan?
6. Show them the money....If you just can't live without the house, pay more money. Ask yourself if you'd feel bad the next day if you found out you lost the home over a few thousand dollars. Remember, couple of thousand dollars translates into an increased monthly payment of around $12-$13 at today's interest rates. Look at home ownership as a long term investment. Is getting the perfect house worth the additional expense?
7.Be prepared to act decisively.... Prepare yourself ahead of time to act quickly if you find the perfect home. I've seen cases where all things being essentially the same in competing offers, the seller chose one offer over another only because the buyers were the first ones to write the offer.
8.Work with a Buyer's Agent....to get the best advice on a specific buying strategy that meets your needs. Have your Buyer's agent interpret the market value of similar homes sold in the area and the pros and cons of the home you're interested in. Consider the agent's evaluation. (Back to MadisonHomesForSale.com homepage)