Potential buyers are often faced with real estate dilemmas that buyers could not foresee in past real estate markets. Today, buyers must be able to deal with a number of dilemmas all predicated on the recent housing market meltdown. These include contingent offers and multiple offers, as well as buying with bad credit, or a bankruptcy.
Let’s start with a look at contingent offers. These offers are challenging for buyers because they indicate that an agreement has been reached by both a buyer and a seller. Despite that fact, new buyers can come up with and present an offer, but only as a back-up. This contingent offer will only be addressed for negotiation if the original offer falls through.
Often, a contingent offer helps the seller more than a buyer. It can be used by the seller’s listing agent to encourage a buyer with a contract to move more rapidly toward closing. However, if a buyer has fallen in love with a particular home, and wants a chance at it, making a contingency offer is a chance that should be taken.
Multiple offers present other real estate dilemmas. These offers happen due to scarce housing supply and increased housing demand. Multiple offers create a situation in which more than one buyer competes for and places an offer on a property at the same time. While not a counter-offer, potential buyers can change their offer to make it more viable to a seller. If any problems are issues present themselves during the investigative period, a high offer may end up being lowered to accommodate any needed changes to the property. These reductions are often not considered by the seller due to the numerous backup offers the seller can accept.
From the buyers perspective, the two most prevailing problems in purchasing a property today may very well be bad credit and bankruptcy. These real estate dilemmas should be addressed by buyers when they first start to consider purchasing a home, before making an offer on a property. That way, their offers will be taken seriously by sellers, and they will know that their applications for mortgages can be accepted. Red Blue Realty stresses that the best way to approach a bad credit issue is to start with a mortgage lender. Let loan experts assist with the mortgage process, and the credit repair process. The goal: improve a buyer’s credit score. Red Blue Realty’s experienced staff can assist in directing buyers through the process of credit repair and mortgage qualifications.
Re-establishing credit after a bankruptcy can be time consuming, but it is certainly achievable. The housing crisis in the U.S. has shaped an environment in which bankruptcy is not uncommon. In fact, current sellers and mortgage lenders understand that buyers may have experienced this situation. The best plan for buying a property after a bankruptcy is to wait two years from a bankruptcy discharge date. After that time, potential buyers can contact mortgage lenders, and examine their current credit report. Lenders can make solid suggestions for mortgage loans and property price ranges for buyers. They can also help by removing black marks on the credit report that preceded the filing.
Red Blue Realty is aware that if a home loss also happened due to a bankruptcy, applying for new lending credit may take three years instead of two. If this waiting period doesn’t work, there are other options for buyers including residing in a property prior to closing and paying rent. Lenders, realty agents, and sellers can work together to find the most applicable solutions.
Real estate dilemmas may be challenging in today’s marketplace, but they can be efficiently handled and overcome with the expertise of real estate pros like Red Blue Realty.