Friday, September 22, 2023 / by Amy Brown
I am lucky enough to live in one of the most beautiful areas in the entire world AND I get the added joy of helping others attain the same beauty in their lives.
So what do you need to bring when it's fall, leaf season, and you want to buy a home in the Blue Ridge mountains? YOUR BATTLE ARMOR
It is just as hot of a market in the fall as it is in the spring and the summer and you need to come prepared, with a thick skin, and with an aggressive mindset. So what does it take to win a bid on a home in Asheville?
Here is my personal strategy...but it is up to you if you choose to follow...remember, always buy at your own comfort level.
1. Expect to be in a multiple offer scenario regardless of whether you are the first bid in or not - more than likely (and this happens more times than I can count), moments before the expiration of your offer another buyer swoops in with an offer and creates a bidding war
2. Be prepared - I can't express this enough! Come with your preapproval letter in hand or your proof of funds statement from your bank. An offer will not even be viewed without it! Know what your financial position is, how much cash you have in hand for deposits and inspections, and what your comfort limit is.
3. Be cognizant of your emotional threshold for the property - We all would like to think that we can approach a business deal with a detached emotional mindset but buying a home isn't business...it's personal. There are always going to be emotions involved and you need to be realistic with yourself as to how much you are emotionally invested in a property. Will you be able to walk away with disappointment but acceptance? Or will you be heartbroken? This is your personal barometer as to how much you are willing to risk in a bid scenario. If this is the one, the dream home, then go in with guns blazing, and offer your tip top number and largest deposits that are going to make the sellers turn their heads and choose you.
4. Decide what aspect of the deal is most important to you and base your strategy off of that - Is it the bottom line or is it money out of pocket? I really want you to think about this because it can make all of the difference in how you strategize your offer as well as make you feel better about the terms. The average homebuyer only stays in their home for 5-7 years!!! That's it! So in the end...if you are using a loan to purchase the home...is the final price really the most important? ABSOLUTELY NOT. ***With today's mortgage rates, for every $25,000 in borrowed money you can expect to pay $140/month! So for a $500,000 house at a 7.5% interest rate for 30 years, that payment is $3181/month. If that bid increases to $525,000, then the payment raises to $3321/month. That's not a huge difference.
When the final number for the house DOES matter is for those buyers paying cash. Then you will want to focus on the final outcome since that is immediate cash out of pocket.
HOW you are paying is just as important as how much!
5. Get into the mindset of the seller and put yourself in their shoes - What kind of offer would you like if it was you that was selling the home? Would you prefer a high non-refundable due diligence that would make you more confident of closing the transaction? Or would you prefer to have a higher end price? More than likely the seller is going to agree along the same lines as you so by putting yourself in their position and acting accordingly you are already a step ahead.
Below is our Fall 2023 leaf forecast. The best time to view the colors will be between the 3rd and 4th weeks of October. If you haven't already, go ahead and get your hotels and airfare booked now!
I look forward to seeing you in my beautiful hometown. Happy Fall!