What's Your Buying Power?

What is buying power and why is it important, especially now?

Buying power is how strong of an offer you are able to make on a property. It’s the most important it has ever been due to our RECORD LOW inventory.

Let’s take Huntley for example. At the time I’m writing this, there are only 22 existing homes for sale in a population that was right around 27,000 in 2019.  17 of the 22 homes are in 55+ communities leaving 5 available homes for the younger folks. The competition is FIERCE!  Bidding wars are the new normal. You need BUYING POWER!

When you make an offer it’s typically based on contingencies, and there are all sorts of them. In this market, the less you have, the better.

Obviously cash is typically king but it’s not always an option for everyone. If you need to obtain a mortgage, check with you lender as to what will be your best lending option. Also, the more money you have to put down on the mortgage the better. If a seller receives two contracts that are identical, and the only difference is down payment, the buyer putting 20% is more desirable than someone putting down say 5%.

If you don’t have to sell your existing home to purchase the new one, leave it out of the mix. It will make your offer much stronger. Sellers will consider home to close contingencies (your existing home is already under contract) but a house to sell (not even on the market or under contract) is near impossible and most sellers won’t even entertain it.

Another contingency is based on the home inspection. I would never recommend not getting a home inspection to anyone EVER, but could you still do the inspection and offer to purchase as-is, if it’s in good shape? Absolutely!

How flexible are you? The closing date is another thing to look at too. Some sellers need to close ASAP, others need a bit more time. The more flexible you can be the better!

If you’re thinking about buying I’d be more than happy to help with your own unique buying power!