You have finally decided to buy a Baton Rouge home in 2022. We won’t sugarcoat this; It’s hard out there for buyers right now. You have to strategize your offers, and you may still have to make offers on several homes before you win a bid. Get ready to learn about multiple offers, appraisal gaps, appraisal waivers, offers over asking, etc. We have a buyer’s guide but in 2022, there are a few things more things you should know to be prepared.
It isn’t a luxury to be pre-approved for your financing; it’s a must. Make sure your lender approves you and not just pre-qualifies you. What does that exactly mean? It means that besides running your credit, make sure they verify your assets and debts to avoid surprises. An agent that can assure another agent that their client has been wholly pre-approved carries some weight when it comes to multiple offers.
Be prepared to offer over list price in most offers. There is such a small inventory it’s like a shark attack when a house comes on the market. Most homes are going for over asking price. You may even be asked to write in an appraisal gap as well. (more about that below)
Terms of the Contact
It doesn’t always come down to the highest price when sellers accept an offer. Make your offer as clean and convenient to the seller’s needs as possible. Ask your agent to call the listing agent and find out if the seller needs some extra time in the house or looking for a quick close.
Shorten your inspection period if possible. This keeps the seller’s home off the market for a shorter amount of time if your contract falls through during the inspection period.
Please don’t ask for closing costs or movable appliances or furniture unless the seller has advertised they will negotiate these things. Remember, we are writing the cleanest offers ever to entice the sellers.
Appraisal Waivers and Appraisal Gaps are two different things. Waivers can not happen if you are obtaining financing. The bank will require an appraisal for the money they are loaning you. However, if you have some extra cash lying around, you can offer to close an appraisal gap. Say you are willing to pay $325,000, and the home is listed at $315,000. Your agent can write in the offer that if the appraisal comes in below $325,000, you will pay cash up to $5,000 over appraised value to close the gap.
Unfortunately, this isn’t the market where you will “find a deal.” We know all this sounds like a scary, horrible experience and we don’t want to scare you, but we want you to be prepared for your venture. Just imagine how rewarding it will be when you buy a Baton Rouge home of your own!
Excited to get started? Check out the Baton Rouge and Surrounding Area homes here.