SIX TIPS AND TRICKS FOR BUYERS

SIX TIPS AND TRICKS FOR BUYERS
1. “Coming soon” listings offer an opportunity for buyers, too.
“You can make an offer during ‘coming soon’ with a one-day, void-only contingency,which allows you to see the property and cancel your offer,” Nellis says. “That way, you’re getting ahead of other buyers. The agent doesn’t have to update the listing for 48 hours, so the status never changes if the buyer drops out within 24 hours.”

2. Buyers can add an escalation clause that automatically increases their offer above others.
“Make the incremental amount of your escalation clause matter, such as offering $5,000 more rather than $1,000 increments,” Shotwell says.

3. A down payment of more than 20 percent and an offer to cover any gap between sales price and appraised value help buyers compete when a house is expected to get multiple bids.
Before making such an offer, Ippolito suggests buyers do a “walk-and-talk” inspection—a tour and discussion of a house with an inspector—to get an informed opinion about the property’s condition.

4. Buyers should look at a lower price range in their initial search so that they have more room to escalate their offer if necessary.
Burr also says waiting ten days to two weeks after a listing goes live gives buyers more wiggle room during negotiations.

5. Buyers using VA loans should offer a larger down payment if they have the funds.
Nellis explains that’s because these buyers have trouble competing if sellers don’t trust zero-down-payment financing. “At the closing, you’re allowed to change your financing, so you can switch to a 0-percent VA loan,” Nellis says. “It’s legal and ethical,since the sellers still get the complete payment for their property.”

6. Shop around for lenders.
The slowdown in sales and refinancing means lenders must compete for borrowers, Black says. Buyers should compare rates and terms and look for down-payment help as well as the option to refinance in the future for a lower fee.