Home Buying in 10007>Question Details

KD, Home Buyer in

How fast should one draft an offer?

Asked by KD, Sat Jan 26, 2013

Hello Everyone,
I am in the process of looking at houses and have liked one. This house has not received any offers yet but has received some interest from buyers. However, i am still in the process of talking to lenders and getting amount of loan rate of interest and closing cost estimates. I want to wait until i am satisfied and find a good lender offering me lowest closing costs and any other benefits.
However, my realtor is asking for submitting the offer and i would like to know whether i should hurry or take it slow? I don't want to rush and later regret my moves for being so hasty.

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Answers

20
Very interesting you're looking at "houses" in zip code 10007 which happens to be one of the most expensive zip codes in the country. I believe the current average asking price is in excess of $2m. Basically there are no "houses" in this area. You have condos/coops and townhouses. The townhouses are usually priced in the millions. End result, I'm a bit confused. You are looking for a "house", you haven't been approved for a mortgage and you are working with a "Realtor" of which there are very few in Manhattan as the agents in the area belong to REBNY and not NAR. This area is near the Hudson and East River and your question sounds a bit fishy.

Don Mituzas
2 votes Thank Flag Link Sun Jan 27, 2013
I wondered where in the city 10007 was located (didnt' bother to look it up), as I knew it was somewhere downtown - didn't realize it was Tribeca (my son is on the UES, 10028, so I knew it was located south of there). Anyway - you brought out some good points - the poster, if genuine, sounds very naive for someone looking in that area, in that price range........ in Manhattan.
Love the internet!
Flag Sun Jan 27, 2013
Looks like Maria is giving specific advice from Florida on a home purchase in New York. The same rules DO NOT apply.

Don
1 vote Thank Flag Link Fri Feb 1, 2013
It this is the most closely to perfect home that you have found, others will like this home too. The offer can be contingent upon the financing, that is not a problem.

Don't loose your home over searching for perfect loan terms. Make the offer contingent upon financing.

It take 10 to 20 minutes to draft an offer.

Hope this helps.
Web Reference: http://www.GetSoldOKC.com
1 vote Thank Flag Link Mon Jan 28, 2013
Have you ever considered reading any of the answers already posted?
Flag Mon Jan 28, 2013
Hello K. You should get your financial ducks in a row before ever going to view property. I suppose your agent wanted to get you in process. Offers in New York require more than just a verbal reference to a price. Loan pre-qualification is one such needed document. This along with a credit report and a financial statement lend more credibility to an offer and will allow for immediate consideration.
Since you're referring to an area that is dominated by Condos and Coops, your application package will ultimately require full financial diclosure. There is no "rush" aspect to getting pre qualified as that can take barely an hour of your time with the mortgage lender of your choice. Good luck as you move forward.
1 vote Thank Flag Link Mon Jan 28, 2013
Kshitij,
Your situation is the PERFECT example why an agent should NEVER take a buyer out to look at home without a pre-approval from a bank. With out a pre-approval, you are NOT a home buyer as your actions have indicated.
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Your agent 'took a chance' and got burned. Now, you should go and secure a loan. Be aware, you are not REQUIRED to use the lender who provides the pre-approval.
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Your agent will hopefully put this in the lessons learned categoryl
1 vote Thank Flag Link Sun Jan 27, 2013
Hi Kshitiji,

Your research for a lender should have been done BEFORE your started looking for a home. Personally I wouldn't have taken you anywhere without a pre approval in place because from my experience many buyers can afford LESS than what they think they can afford as mortgage guidelines today are extremely rigid. Now, if you don't want to rush, no problem, just don't be disappointed if the house is no longer available by the time you finally get it all together. You clearly are not motivated or ready to buy that particular house.

Aso just to let you know, interest rates change all day long, every day so you can't shop by interest rates.

All the best with everything.

Janet Nation, CBR
Sailing Home Realty
Direct: 646-321-9649
Office: 516-377-4760
Licensed Real Estate Salesperson
http://www.jnationproperties.com
1 vote Thank Flag Link Sun Jan 27, 2013
Home affordability is at the highest level ever and mortgage rates historically low, so if you find a house that you like submitt your offer as soon as possible. Home sales has been steadily growing for the past couple of years and is expected to double every year for the next five years. After you have an accepted sales contract you have 5 days to complete the selection of a Lender.

Best of Luck,

Maria Cipollone
Century 21 Tenace

http://www.Flahomespecialist.com
0 votes Thank Flag Link Fri Feb 1, 2013
Low interest rates and finding an affordable home has prompted many prospective buyers to rush through the house-hunting process in hopes of making a quick purchase before these great deals come to an end. But that's not always a good idea! As tempting as the low interest rates can be, you shouldn't snap up the first house you see. Remember, not every home for sale is a good buy, so potential home buyers need to be very careful before purchasing a home. Here are 5 red flags you need to be on the lookout for while you’re house-hunting:
0 votes Thank Flag Link Fri Feb 1, 2013
Hello KD,

Are you pre-approved already? It's unclear.

The first step, before even viewing any apartment is to ask (and get) a pre-approval letter. This letter should be submitted with your offer.

Best,

--

Nicolas Puygrenier ǀ Licensed Real Estate Broker
Mona Lisa Real Estate Group LLC
419 Lafayette Street, New York, NY 10003
Telephone: 917 499 1917
Email: nicolas.puygrenier@monalisanyc.com
0 votes Thank Flag Link Thu Jan 31, 2013
Just curious, why did you answer this question that has been so thoroughly gone over?
Flag Thu Jan 31, 2013
Entering an offer is something that is not legally binding and can be revoked at any time. Also after entering an offer, you're opening a dialogue to the seller's agent so you can be more closely involved in who else is interested in the home.

I would strategically put an offer in that both you and your agent agree on so negotiations can begin while you are handling everything with your lender. Let your agent bring the price down to where financing is easiest for you and the best lending options await you.
0 votes Thank Flag Link Thu Jan 31, 2013
Why do some agents answer questions that have been so thououghly gone over? Do they even read the original question or any of the past answers? It seems like more to get a VIP badge then answer the question.

Don
0 votes Thank Flag Link Mon Jan 28, 2013
Ask your real estate agent to recommend a few mortgage broker that can explore your financial status and give you a pre approval letter for the amount that you can easily afford. Choose one that can answer all your questions on the first meeting.

Best of Luck,

Maria Cipollone
http://www.Flahomespecialist.com
0 votes Thank Flag Link Mon Jan 28, 2013
I am not sure if your question relates to making an offer for a property located in 10007 zip code or in 95747 - you had questions related to both. In Manhattan when submitting an offer, you would have to accompany your offer with REBNY form financial statement and a mortgage pre-approval letter to show to the seller your financial ability to close on the property.

The seller will not likely take seriously an offer that is not backed by a mortgage pre-approval or at least can clearly demonstrate (has a documentary proof) that you can easily get a required mortgage amount.

Getting a mortgage pre-approval does not make you obligated to go with this particular bank later on if you find a better deal on a mortgage. However, it gives you credibility as a buyer when you make an offer - you should get it anyway, even if you want to keep looking for a better loan program. It only take 1-2 days to get a pre-approval letter.

About making an offer fast - it is up to you to decide if you want this property or don't mind losing it. With a low supply of inventory, good listings don't stay on the market long. Also, many agents told me that there were no offers at all for their listings and then all of the sudden they started getting many offers at the same time. I would say it is better to make an offer, when there is no competition than compete with other offers. Ask your agent for a listing history, how long it's been on the market for and whether they have reduced the price, etc. to see how motivated the seller is. Also, ask for a comparable market analyses to come up with a good idea of the price range in the neighborhood, etc.

Good luck with the mortgage pre-approval and with the offer!
0 votes Thank Flag Link Sun Jan 27, 2013
My recommendation to buyers is DO NOT LOOK AT ANY HOMES FOR SALE until you are fully pre-approved (not just pre-qualified) for the very reason you site above.

Stop looking. Get together with your banker, mortgage broker or mortgage banker and put yourself in the correct position to make a bid.

The mortgage broker/banker of my choice is Brian Tom btom@cliffcomortgage.com 516-941-0213. Brian can help you position yourself to make the right offer.

gail@GladstoneGroupRealty.com
631-425-6150
0 votes Thank Flag Link Sun Jan 27, 2013
Don brought out some good points.

You didn't mention you were looking to buy in a high-end Manhattan neighborhood, comprised mostly of condos and co-ops...with some townhomes thrown in the mix.

Buying a co-op in the city is challenging enough. Navigating through the board requirements takes verve and an experinced agent.

You sound rather naive for someone looking to buy in that high priced area - so, if that really is where you are buying, you better stop and do your due dillgence before moving forward.

I am also surprised a Manhattan agent would take the time to show you properties, without being pre-approved, as there are strict financial requirements if co op boards are involved.
0 votes Thank Flag Link Sun Jan 27, 2013
I am a firm believer in if you are serious about home buying and find a home you love, make an offer. By taking it slow you can easily miss out on a great home, there is plenty of competition in the market.

Chris
0 votes Thank Flag Link Sun Jan 27, 2013
Not sure why one is touring properties without knowing personal affordability; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore before making any offers choose a lender to work with. Begin visiting properties only when you are ready to buy, and financials are in order....
0 votes Thank Flag Link Sun Jan 27, 2013
If you are certain you have found the home you like best, and you have already been firmly preapproved by a lender, get your foot in the door and make an offer. Because it can take a couple of weeks between negoting the offer, completing your home inspection, and getting the contract to your attorney, buyers often will also use that time to shop around and compare lenders based on fees and level of service. (As someone said earlier, interest rates fluctuate daily so rate shopping isn't always a fair apples to apples comparison of mortgage companies.)

Good luck!
0 votes Thank Flag Link Sun Jan 27, 2013
Your Realtor is just being realistic. In the current real estate market environment, buyers need to be quick to win any deals. But, in your case, the limiting factor is your loan pre-approval. If you haven't selected a lender, then you don't have a pre-approval to complete your offer anyways. At today's rates, you're really looking at small differences between lenders, not a big issue when you may be coming up against aggressive competitors willing to bid $10's of thousands more than you when you wait.

You should discuss this with your Realtor or if you're not comfortable with your current Realtor, find one you trust.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sat Jan 26, 2013
Well, no one should rush into buying a home, afterall, it' s not like buying a coat that you can return if you decide you made the wrong choice!

Basically, though, you answered your own question - you said: " I want to wait until..........etc.".

Ok - so wait!

I don't know how long you have been looking, or how comfortable you are with the buying process as yet......but no agent should rush you into makinf an offer.

That being said - it shouldn't really take that long to speak with, and be pre-approved by a lender, especially if you're working with an agent who can recommend some good mortgage reps.
I do suggest you use someone who is referred to you.

Overall - you may just not be ready to move forward, and that's ok.

It's fine to take your time before you jump in with an offer......just make sure you won't regret holding back if the house sells before you're ready.

If it does - there will always be another house!

Only you can tell if you're ready.

Good luck!
0 votes Thank Flag Link Sat Jan 26, 2013
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