The housing market in the Clayton and Cloverdale area of Surrey is hot. Because houses have been selling so quickly there is low supply but lots of buyers want to get into the market at the low-interest rates the market is holding on to. Here are a few tips to help give you a better chance of having your new home offer approved in the Clayton and greater Surrey area.
Get pre-approved for your mortgage amount
While you can always use a calculator to help your family better understand what mortgage amount and payments you can afford, it’s important to have a guaranteed pre-approval prior to making an offer on a home.
A mortgage specialist can send you a proof of pre-approval which tells the seller you are approved for the amount you are offering on the home. This can often help secure the purchase when you are bidding against other buyers as sellers prefer a guaranteed sale over a larger potential amount.
This is also true if a cash offer is made. While you do not have to offer cash if you are stuck bidding against others, cash can make your offer more enticing to the sellers.
Choose the right agent
Many people believe that if they see a house they need to call the agent on the sign of the house they wish to purchase. This is not always the best way to look for an agent unless you have already dealt with that agent in some capacity.
A seller’s agent will always have the seller’s best interest in mind and it is important for you to have a realtor that is in your corner with your best interests in mind. Talk to family and friends and read reviews. Find a realtor that knows your area well and is prepared to create an enticing offer that gets you noticed.
Offer more money on home price
Everyone wants to get the best deal for their home but it is a seller’s market right now. There is a limited supply of homes being sold in the local Surrey area and lots of people looking to purchase a home at unbelievably low mortgage rates. Because of this buyers are at a disadvantage in some sense. It is best to be strategic about your home offering.
How to offer a lower home price
If you are going to offer a lower price then what is listed sweetens your deal with other terms that will help the seller out. For example, you can shorten the time to close or remove inspection clauses. If you feel comfortable in the removal of certain home requirements then your offer can look more enticing to a seller even with the lower amount.
Talk to your agent about the requirements you have with the home and make sure you are not removing something from the contract that will affect you negatively in the future.
Shorten your closing date requirements
If you want to entice a seller with your offer you can always tighten the dates to close on the home sale. By shortening the close dates the seller is guaranteed the sale faster.
The closing date should be chosen based on the best interest of you, the seller, and your lender so talk to your lender before setting a short closing date. If you have done all of the background work with your lender and have a good pre-approval you are in a better position to offer a shorter closing timeline.
The time to close does not always coincide with the move-in date. Your closing time will likely be between 30-45 days while the move-in date is set between you and the seller in the same contract and is only extended if another sale is pending.
Submit a personal letter with your offer
This is one step in the process many don’t think of when purchasing a new home. You are buying someone else’s home to make your own. There are often memories and important events that happened within the walls of that home that are hard for the seller to let go of. The emotional attachment can often be great and can rise above a high monetary offer.
Write a letter to the seller telling them about your family and making your offer more personal. This letter can help humanize your offer past the numbers and for the right seller can mean your bid wins over that of a higher faceless bid.
Here are some tips on buying a home during the pandemic. While the purchase may look a little different it is still important to make sure you are not missing out on important steps.
The Cloverdale housing market
The housing market in Cloverdale and in Surrey and the Lower Mainland as a whole does not look like it is slowing down anytime soon. Zolo states that 2020 home sales are up 19%. Sales are even in all sizes and prices of homes in the city. Homes are spending an average of only 24 days on the market and sales are 99% in line with the selling to listing ratio.
If you are looking to purchase a home in Cloverdale or in Surrey make sure you are ready to outbid those around you. Supply is limited and houses are selling fast. Get in touch with your realtor early as your realtor can show you homes that are not yet listed publicly giving you the opportunity to make an offer before anyone else can.