Be a Strong Real Estate Buyer

Resume?  Personal letter?  Pre-approval letter and proof of funds? 

As you may have heard, Portland's housing market is in a bit of a crisis.  No, not that housing bubble crisis.  We have WAY more buyers than houses to sell! Multiple offers are common place, as are sales prices well above asking prices.

Buyers are challenged to differentiate themselves from the competition to get their offers accepted.  Obviously price is a big concern, but many sellers like an emotional connection with a buyer and may forgo a higher offer for a financially well qualified buyer with whom they identify.  Here are a few tips:

1) Get pre-approved through a local mortgage lender or mortgage broker; preferably one with a solid reputation in the real estate community.  If a listing agent has worked with your lender and liked them, they'll most likely pass on that positive report to the seller.  With loan underwriting guidelines as strict as they are, we see plenty of loans fail from loan processors not knowing how to correctly verify and document assets and liabilities.  Get a good lender and do the legwork of pre-approval up front. 

2) Be willing to provide proof of your down payment funds.  This can be in the form of a banking or investment statement, with the account numbers blacked out.  It does need to show at least the amount of money required for your loan and your name(s).  Waiting for a payout from your deceased Aunt Tillie's estate does not a down payment make.

3) Put a few kind gestures in your offer.  If the sellers are going on to buy another property, they are stressed out and challenged about selling and buying and moving in a short period of time.  Offer the sellers a few days in the house after closing, at no cost to them, and then be generous in allowing them to rent back for another week or so.  Yes, this will cost you a bit as you'll have ownership costs, but it may well get you the house you want.  If the house is an estate, consider offering to dispose of unwanted household goods and personal effects. This will cost you a bit of time and money, but may be invaluable to the heirs.

4) Work on a generic letter ahead of time, which you'll customize for each offer you write. This is a letter to the seller about you, complimenting the house and talking about the features that draw you to the house.  Clearly the second part is done specific to each house.  This may well be the sappiest thing you ever write.  " The work you've done to the yard is just wonderful;. My partner is an avid gardener we look forward to summer evenings under the gazebo etc."  Or, "our children, ages 4 and 6 are so excited to live so close to the park and to have their own rooms".  Really tell your story and include pictures.

5) If the seller is an investor or a bank, they may be more interested in the price.  But a clean offer; reasonable close date, ample earnest money, respectable price and a strong pre-approval letter should do the trick.  Don't clutter your offer with small one-off requests such as removing the cat door or re-keying the locks.  Less is more.

Email me for more tips on getting your offer accepted at leslievjones@gmail.com