Blog

How to Compete in a Seller’s Market?

How to Compete in a Seller’s Market?

 

     In most areas of our country, the real estate industry is seeing a marketplace leaning heavily toward a seller’s market.  Low inventory, high competition among buyers, rising prices, and little wiggle room with regard to inspection demands and contingencies are commonplace, all evidence of a seller’s market that’s making things extremely tough for buyers.  Buyers in the most popular price ranges of their respective markets (usually entry level and move up) have it especially tough, often encountering multiple offer situations, demands for “highest and best”, and bidding wars taking place just to get a place to call home under contract.

 

     With regard to ‘highest and best’ demands, the price point is going to be pretty straightforward – pay more, it’s likely yours.  Pay more while making other concessions (no contingencies, no JM-redinspection demands beyond a certain dollar amount, quick closing, etc), and the offer gets even stronger.  This leaves the question of “best” – what makes an offer the best offer?  Is it cash?  Considering cash buyers have no mortgage contingencies and can close very quickly, seller’s seem to favor these offers.  Even cash buyers, though, come with a set of headaches.  Since they don’t need a mortgage and usually have a “Cash is king” mentality, meaning they may take issue with appraisal findings, have inspection demands that go above and beyond what many sellers deem reasonable, or have other demands and expectations that financed buyers do not.

 

     For buyers looking to purchase their dream home in a heavy seller’s market, the JMLoans team at Mason McDuffie Mortgage has created a solution to make a buyer’s offer stand out as “best” amongst the competition, even if that competition is cash.  We’ve named it, aptly, “Buyer’s Best”.

 

     With our Buyer’s Best program, home buyers go through the mortgage underwriting process before they find a home.  All of their income, asset, and credit documentation is gathered and reviewed by an underwriter, and a full underwriting approval is issued with a ‘TBD’ property listed.  Once our Buyer’s Best clients find a home, all that’s left to do is the appraisal & title work.  This shortens the turnaround time on the buying process, removes the need for a mortgage contingency, and gives buyers the same level of strength as a cash offer.  Under Buyer’s Best, as soon as a property is found and put under contract, the process to wrap things up and fund is less than 2 weeks (dependent, of course, on a clean and quick appraisal and title report being received).  

 

     For Realtors, this is a way to ensure your clients are in the very best position when buying a home, and sellers can rest assured that buyers using Buyer’s Best won’t cause any delays in financing.  All of the worries normally associated with financed buyers are assuaged, and therefore a financed offer is truly stronger than others with standard mortgage “pre-approvals” or even worse, “prequalifications”.  Ahead of what’s expected to be a busy Spring season, Buyer’s Best could be the difference between getting the keys to a dream home and missing out because of multiple bid situations.  To help further, the loan officers on my team will call the listing agent upon an offer going in to explain the Buyer’s Best program and inform the agent that the steps we’ve taken make your offer (even if not highest) the very best amongst financed offers in terms of strength and possibility of closing with no issues or hassles from a seller.

 

Questions about Buyer’s Best, or any of our other programs designed to help home buyers and real estate agents?  Give me a call at 484-680-4852 or get an immediate answer by asking an expert here.

Leave a Comment





John Meussner | MLO NMLS 138061

Licensed by The Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. NMLS# 1141
MasonMac Corporate

Mason-McDuffie Mortgage

Office: (949) 247-7530

12647 Alcosta Blvd
Suite 300
San Ramon, CA 94583

Licensing:

Not a commitment to lend. Rates and terms subject to change without notice. Licensed by the California Department of Financial Protection and Innovation under the California Residential Mortgage Act No. 4130968; AL #22653; AR #32700; AZ #1015403; Colorado regulated by the Division of Real Estate; DE #019623; FL #MLD819; Georgia Residential Mortgage Licensee #20924; ID #MBL-5861; Kansas Licensed Mortgage Company #MC.0025601; KY: #MC701698; MD: #16927; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance;Licensed by the Minnesota DOC #MN-MO-1141; Licensed by the NJ Department of Banking and Insurance; NC: L-152867; NV: #3681; OK: #ML012358; Licensed by the Oregon Division of Financial Regulation #ML-3808; PA: #37008; TN: #112513; Licensed by the Virginia State Corporation Commission #MC-5579, WV: #ML-31523/MB31759. NMLS #1141. www.nmlsconsumeraccess.org 

CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.
THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.