The local Storm Lake area housing market is super fast! This is great for sellers but not so great for buyers.
Buyers are competing with many other buyers on few properties. Sellers are less inclined to provide concessions like closing costs, home warranties, and inspection allowances when there are multiple offers.
So how do we help Buyers get into homes fast and make successful offers?
Part of our mission is to help educate the general public, buyers and sellers on how real estate works. So we provide an initial interview with buyers where we discuss and make recommendations on how to proceed and be successful in this type of market.
The first recommendation we make is that all buyers have their banking done and a pre-approval letter in hand. We prefer a local bank if at all possible, NO, I am not prejudice nor do I discriminate. But, I am an experienced, full-time professional Broker and I have been through hundreds of closings. A number of the online lenders are a nightmare to work with and in my experience some are at less than 30% getting the loan to close.
The other topics we discuss include buyer's closing costs, home inspections, delayed closings, and moving in ahead of closing. Having the discussion about who pays the buyer's closing costs is very important. Both buyers and sellers have closing costs, in a buyer's market sometimes a buyer can ask the seller to help them with their closing costs, this is called a concession. However in a strong seller's market asking for closing costs can cost the buyer the property, especially if another offer comes in without closing costs requested.
Home inspections are important in every purchase. In a strong seller's market it is important to have an inspection but to also understand the seller does not have an obligation to repair anything your inspection finds. So why have one; the inspection serves 2 purposes: 1. you know the condition of the property and if it needs work and 2. if the inspection results in large issues you can void the offer (IF THE OFFER IS WRITTEN WITH THAT CONTINGENCY).
Delayed closings are when a buyer is unable to close within the standard amount of time, in the Storm Lake area that time frame is usually 45-60 days. The longer the closing is delayed the more risk the seller is taking that something could go wrong with the buyer's loan. Making the seller nervous is not a good option in a seller's market.
Moving in ahead of closing or Interim Occupancy - this is never a good idea in any market. Too many things can go wrong. What if the buyer looses his job, it has happened, or if the property has a fire, appliances break - who repairs? too many variables to risk.
It is all about the bottom line for the seller, as a buyer my job is to help you think like the seller so that we can put together an offer that stands out from the others.