From Searching to Sold

Getting my clients “from searching to sold” is hands down my favorite part of being a Realtor. The DMV (DC, Maryland, Northern VA) market is notoriously a seller’s market and can be difficult for many buyers. DC rarely builds upwards, meaning there’s only so much space for residential contractors to logistically build out. This lack of inventory and space in DC, causes many buyers to search outside of the city and into neighboring states (Maryland and Northern VA).

Currently, with everyone at home due to the COVID-19Pandemic, we have a record number of buyers looking to leave the city for a larger home where they can sleep, work, exercise, and possibly teach from! Buyers need more flex spaces as this pandemic had definitely changed our social activities. Combine this with extremely low interest rates… well, you’ve got an even more competitive seller’s market.

My job as a buyer agent is to help get you from searching to sold. There are a variety of variables when it comes to constructing an acceptable offer that can be summed up in 3 main groups: finances, contingencies and timeline. I take a comprehensive, methodical approach to home buying and my clients (and other agents) thank me for that. My #1 goal is to make sure my clients are 100% comfortable with the offer we are putting in front of the sellers, and understand the pros and cons (and risks) to including X, Y, Z contingencies. You will find that every offer will be different based on the # of offers the seller already has in hand; thus, you and your agent must be smart and agile in creating your best and final offer without sacrificing your personal and financial interests.

As a listing agent, my main job is to properly advise the pros and cons of every offer. It is a big risk for a seller to take their home off the market for an offer. That’s why it is extremely important to properly convey your willingness and ability to bring your offer to the closing table.

3 Main Groups and Things to Consider:

Finances

What is an Earnest Money Deposit? An Earnest Money Deposit (EMD) can be viewed as a down payment on your down payment. The EMD is the collateral used to make sure that you don’t default on any contingencies or pull out from your offer without using a contingency. If you default on a deadline or a part of the contract, your EMD is at risk of being given to the sellers. Since this is essentially collateral, this shows your willingness to proceed with the contract. This shows that you are a serious buyer and have no intention of backing out.

What kind of loan do you have? As with anything else, CASH IS KING. However, if you’re like most Americans, you either don’t have that much free cash or don’t want to spend it all in one investment. After cash, comes conventional. Conventional loans are the most common type in residential real estate and most preferred (outside of cash).

What bank are you using? Believe it or not, whom you bank with is going to be a huge seller consideration. Sellers and Listing Agents want to make sure that your banker can make the deadline set forth within your contract and not create headaches because of missing paperwork. Your banker must be quick to respond and almost always readily available.

Contingencies

Inspection - Allows you to have the home professionally inspected within a certain timeframe. You can include the option to negotiate repairs/credits or unilaterally void the contract.

Appraisal - Your bank is likely going to hire an Appraiser to quantify the value of the home and provide an Appraisal Report. The lender wants to make sure that the house is worth the amount you’re buying it for. If you have an FHA loan, you cannot waive this contingency.

Financing - Your lender will be able to guide your agent as to how quickly they can close. The shorter this time frame is, the better it looks for the sellers.

Timeline

How quick can you close? The quicker you can close, the better. I have worked hard to put together a team of lenders and title agents that can close as soon as 2 weeks. If I can present an offer to a seller and tell them “Listen, I can get this home off of your hands in 2 weeks. How does this sound?”, they will likely choose our offer over another similar offer (or even higher offer!).

If you have any questions, please feel free to email me or schedule a free consultation!