What does it take to be ready to act in this market? Michelle from New American Funding is here to discuss.
Today, I’m here with Michelle Piccinini from New American Funding to talk about market inventory. How can you be offer-ready in this market?
According to Michelle, being offer-ready refers to the low amount of inventory we’re seeing in the market. Houses are going fast, and multiple offers are more and more common.
If you’re offer-ready, it means that you’re pre-approved, you have a letter in hand, and you’re ready to go. When you’re offer-ready, you’re prepared to take immediate action when the right home comes on the market. Because of the multiple offers we’ve seen, many of those offers are coming in over asking price.
On the lending side of things, we’ve seen many appraisals come in low. Yes, you got into contract, you won, and it is your home, but now you still have the financing contingency. When the appraisal is done, properties are increasing in values, but we aren’t seeing homes closing at a fast enough rate to justify the value. From a lending perspective, we just want to make sure that you’re prepared.
If there’s a situation in which a home comes in $10,000 under what you’ve agreed to offer, we now have a situation on our hands: will the seller agree to drop the price? Do we have the money from the buyer to make up that difference, or does the whole thing fall apart?
In this crazy market, it’s wise to work with an experienced agent and lender who can help you navigate situations. That’s why we are here.
If you have any questions, please reach out to us. We would love to help you.