OBX property values have come down over the last few years and there are many great values available today. Even in these great buying times, getting the best value for your money is of utmost importance. Here’s a few ways to help insure your OBX property buying funds go as far as possible.
Get Pre approved: Sellers are most concerned about your ability to purchase the property. If a seller is unsure if you can get a loan to purchase their property, they’ll be less likely to negotiate and/or accept your offer. A pre-approval letter from a local lender should give a seller enough piece of mind to give you their best price.
Offer a significant earnest money deposit: A large earnest money deposit shows that you are serious about buying an Outer Banks property. Sellers know it is much easier to walk away from a small earnest money deposit. What is a significant deposit? Its relative on the purchase price and other factors but three to five percent of the purchase price will likely give the seller a comfortable feeling about your intentions to purchase.
Structure the offer to close quickly: Sellers realize that the longer the closing is delayed the more likely something could happen to kill the deal. Anything could happen from the buyer loosing his job to a fire destroying the property. Also sellers have property expenses they’ll have to pay until the property closes. A quick closing minimizes those additional expenses for a seller. If you are getting a loan, talk with your lender and get an idea how quick they can approve your loan and use that time frame in the offer.
Base your offer on comparable sales: Even in the best buyer’s market unrealistic or low ball offers can cause a seller to either reject an offer outright or to not take the offer seriously. Have your Realtor search the MLS for the most recent comparable sales and base your offer on what other buyers have been willing to pay. This market analysis can be very detailed like the one here or just information on the latest few sales. Even if you don’t want to pay the same amount staying fairly close to the great values other buyers have recently received often results in a more favorable response from the seller. Your Realtor should also be able to share some key factors on how the sold comparables features were better or worse than the property you are considering. Sellers are usually well informed about market values and will recognize you are a serious buyer from the offering price.