When it comes to buying an RCFE residence, you’re looking for the perfect place for your residents to call home. The problem is, in today’s market there just aren’t that many RCFEs available to purchase. With inventory hovering near record lows and high buyer demand, a multi-offer scenario is the new normal. Here are five things to keep in mind when you’re ready to make an offer.
- Know Your Numbers
Having a complete understanding of your budget and how much house you can afford is essential. That’s why you should connect with a lender to get pre-approved for a loan early in the RCFE homebuying process. Taking this step shows sellers you’re a serious, qualified buyer and can give you a competitive edge in a bidding war. We can refer you to lenders that lend on the RCFE model, including SBA lenders, who offer the possibility of a low down payment.
- Brace for a Fast Pace
Today’s market is dynamic and fast-paced. We will do everything we can to help you stay on top of every possible opportunity. And, as soon as you find the right RCFE home for your needs, we will help you draft and submit your best offer as quickly as possible.
- Lean on a Real Estate Professional
While RCFE homebuying may seem like a whirlwind process to you, we do this every day, and we know what works. That expertise can be used to give you a significant leg up on your competition. We can help you consider what levers you can pull that might be enticing to a seller, like:
- Offering flexible lease-back options to give the seller more time to move out
- Your ability to do a quick close or make an offer that’s not contingent on the sale of your current assets.
It may seem simple, but catering to what a seller may need can help your offer stand out.
- Make a Strong, but Fair Offer
Let’s face it – we all love a good deal. In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case. According to Lawrence Yun, Chief Economist at NAR:
“Half of the homes are being sold above list price.”
This is true for standard residential housing, and is often true for RCFE homes, as well. In such a competitive market, emotions and prices can run high. We will help you prepare a strong, but fair offer based on market value, recent sales, and demand.
- Be a Flexible Negotiator
If you followed tip #3, you drafted the offer with the seller’s needs in mind. That said, the seller may still counter with their own changes. Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember, there are certain contingencies you don’t want to forego. Freddie Mac explains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
When it’s time to make an offer, it’s important to consider not just what you need, but what the seller may need too. Contact us for expert advice on this step in the homebuying process. We can help you put your best offer on the table.
If you are considering buying, selling or leasing an RCFE, please call us TODAY to explore your options. We would be delighted to evaluate your business and provide price guidance. We will help you obtain the highest possible price for your RCFE.
Michelle (949) 397- 4506 & Melvyn (949) 500-3630