Boise Real Estate Blog

If you’ve tried to buy a home in the Boise real estate market recently, you’ve probably discovered the challenges of multiple offer situations.

With our low listing inventory and strong demand, I’m seeing multiple offer bidding wars on listings in most areas of our real estate market.

Like most other Realtors^®, I’ve recently (like last week!) worked with buyers who were outbid in multiple offer situations.

If you’re a buyer, here are a few tips on how to make your offer stand out vs. the competition.

Pre-Approved Financing

Pre-approved financing isn’t optional.

You must be able to prove that your financing is pre-approved if you want to have your offer seriously considered.

Work with a local direct lender who underwrites your pre-approval.

Avoid working with lenders who do nothing more than issue a weak pre-qual letter with a long list of conditions.

Earnest Money

Earnest money matters despite being of somewhat questionable value.

Sellers are often impressed with large earnest money amounts.

You’re probably going to need those funds to close anyway, so why not offer more earnest money to help secure an accepted offer?

Obviously, offers with little or no earnest money will usually be rejected by a seller.

Closing Date

Your offer will have a better chance of acceptance if you tailor it to the seller’s needs.

Try to determine when the seller wants to close, then craft your offer to meet the seller’s wishes.

If the property is vacant and the seller is continuing to make loan payments, a fast closing will be attractive to the seller.

Conversely, if the seller is having a home built that won’t be completed for another 60 days, a 60-day closing will likely succeed.

Contingencies

Contingencies are deal-killers in multiple offer situations.

An offer that’s contingent upon selling another property is a non-starter in a multiple offer situation.

An offer that’s contingent upon closing an existing escrow is slightly better, but you will need to provide proof that the deal is solid along with your offer.

That means the underlying transaction should have firm loan approval, an appraisal, and have no remaining unresolved inspection issues.

Personal Property

Avoid asking for personal property that isn’t offered in the listing.

Asking a seller to leave their refrigerator, washer, or dryer could require them to replace those appliances if they intend to keep them.

Asking for personal items can also offend/annoy the seller and cause you to lose out to another offer.

Inspections

You have the right to have the property you’re buying inspected.

In our current hot Boise real estate market, some buyers are waiving their inspection rights to make their offer more attractive.

I do NOT recommend this!

Escalation Clauses

Escalation clauses are also appearing in the Boise real estate market.

An escalation clause essentially says that the buyer will outbid any other offer; often including a maximum price the buyer will pay.

I know of one recent situation where a $249,900 listing sold for $272,000 with 16 offers, all cash, no appraisal, inspections waived, and an escalation clause.

I do NOT recommend that you engage in this silliness.

Contrived Multiple Offer Situations

Some listing agents, and their sellers, have become adept at delaying responses to offers while they hold open houses in an attempt to generate multiple offers.

This can sound very attractive to a seller who wants to take advantage of eager buyers in our hot market.

I’m seeing many listings these days stating that the sellers will be unable to respond to offers until (insert date here).

Everyone has cell phones, e-mail, and text capabilities these days.

It’s a bit of a stretch to believe that a listing agent can’t reach a seller and get a response to your offer quickly.

If you’re told that the seller won’t respond to your offer in a reasonable time, and the home is being held open in the meantime to generate competing offers, you should carefully consider if you want to play this game.

Do you really want to do business with a seller and listing agent who conduct themselves this way when you’re making a good-faith offer to buy the home?

My Advice

Sometimes, the best thing you can do in a multiple offer situation is to walk away and not participate.

Despite our lack of listing inventory, there will always be another house.

Don’t let yourself get caught up in a bidding frenzy!

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Phil Hoover is a licensed independent Idaho real estate broker, assisting both buyers and sellers in Boise Idaho, Meridian Idaho, and Eagle Idaho.

During his 45 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.

Phil is one of only ten local Realtors^® (of nearly 5,500) honored with the coveted “Realtor^® Emeritus” award from the National Association of Realtors^®, recognizing 40 years in real estate.

 

I’ve often said that I earn my commission when a transaction goes into escrow.

Here are 36 common buyer challenges that I often must overcome to get a transaction closed.

Believe it or not, I’ve dealt with almost all of these items over my 44-year real estate career!

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1. Buyer misrepresents/omits information on the loan application.
2. Buyer’s credit report lists late payments and/or liens.
3. Buyer “forgets” to disclose all debts on the loan application.
4. One or both buyers lose their job during escrow.
5. The buyer’s income gets verified lower than stated on the loan application.
6. The buyer’s closing costs are to be covered with a gift from parents, but the parents fail to provide a gift letter.
7. Buyer is a salesperson with 100% commission/bonus income.
8. The lender refuses to consider the buyer’s overtime/bonus income.
9. The buyer buys and finances a new $60,000 Dodge Ram pickup (needed for moving!) before closing.
10. The buyer files for divorce before closing.
11. The buyer’s new job offer gets withdrawn or declined.
12. The buyers decide that moving is a big hassle and change their mind.
13. Aunt Tilly changes her mind about gifting the down payment to the buyers.
14. Buyer Fred knows he divorced Carol, but can’t find the divorce decree.
15. Buyers Ken and Barbi “think” they finished their Chapter 7, but lost the discharge paperwork.
16. Buyers Suzi and Max “think” they’ve filed tax returns for the past two years, but can’t find copies of them.
17. Buyer “forgot” to file tax returns for the past five years.
18. Buyer filed extensions for last year’s taxes and hasn’t paid taxes due.
19. Bank statements? What bank statements? We ain’t got no checking account!
20. Buyer’s landlord doesn’t “do e-mail” and is unable to verify buyer’s timely rent payments.
21. The Fed raises interest rates and the already-marginal buyer can’t afford another $20/month on their payment.
22. Buyer’s lender suddenly switches the buyer to another loan program with higher rates, points, and garbage fees, causing the buyer to no longer qualify for financing.
23. Buyer forgets to mention to the lender that he pays child support for his three children from a previous marriage.
24. Buyer thinks filing for Chapter 7 last month isn’t a problem.
25. Buyer has three part-time jobs with income that’s mostly commission and/or bonuses.
26. Buyer “forgets” to mention to lender and/or his agent that he lost his job 3 days before closing.
27. Buyers deliver handwritten pay stubs to lender with handwriting that’s curiously similar to their own handwriting.
28. Buyer changes jobs one week before closing and the new job has a 90-day probationary period.
29. Buyer dies in a car accident on the 42^nd day of a 45-day escrow.
30. The IRS files a tax lien against the buyer the day before closing.
31. The buyers think they can buy a 3,500 sq. ft. custom home on 5 acres in Eagle, Idaho for $250,000.
32. Buyer withdraws from the purchase because the listing agent stated four bedrooms and there are only three bedrooms and an office with no closet.
33. The buyer says they are a veteran, but lender is unable to obtain a copy of the DD214.
34. Buyer “invests” the down payment during a vacation to Las Vegas and lacks the funds to close escrow.
35. Buyer can’t document why extra money keeps showing up in checking accounts during escrow.
36. Buyer thinks it’s okay to write a personal check at closing.

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Phil Hoover is a licensed independent Idaho real estate broker, assisting both buyers and sellers in Boise Idaho, Meridian Idaho, and Eagle Idaho.

During his 44 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.

Phil is one of only ten local Realtors^® (of nearly 5,500) honored with the coveted “Realtor^® Emeritus” award from the National Association of Realtors^®, recognizing 40 years in real estate.

 

Boise Idaho Over-55 homes are attractive for many homeowners when the kids are gone and other activities beckon.

Over-55 developments usually offer smaller homes on smaller lots and often provide full landscaping care.

We have very few true Over-55 communities in our real estate market, but the ones we have are very desirable.

Perhaps more importantly, the Boise Idaho real estate market also offers homes in several developments that do not require occupants to be age 55 or older.

I can help you find high-amenity homes on smaller lots with full landscaping maintenance included in the HOA dues.

For more information on these listings, please give me a call at (208)938-5533 or e-mail me.

 _______________________________________________________

Phil Hoover is a licensed independent Idaho real estate broker, assisting both buyers and sellers in Boise Idaho, Meridian Idaho, and Eagle Idaho.

During his 44 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.

Phil is one of only ten local Realtors^® (of nearly 5,500) honored with the coveted “Realtor^® Emeritus” award from the National Association of Realtors^®, recognizing 40 years in real estate.

 

If you’re trying to buy a Meridian Idaho home, you already know we have a hot market with low listing inventory.

Sharp, properly priced homes sell immediately; sometimes within hours, with multiple offers.

If you live in another state, it can be difficult and expensive to visit the Meridian area and view homes before they sell.

In most instances, that sharp new listing you’ve spotted online will sell before you can get here to look at it.

It’s also easy to spend $1,000 (or more) on airfare, hotel, and a rental car for a house-hunting trip.

Here are a few thoughts on how to deal with this situation.

Pre-approved financing is a must!

If you’ll be financing your purchase, it’s vitally important to get your financing approved upfront!

A seller will not take your offer seriously if you don’t provide proof of approved financing with your offer.

Pre-approval will also provide you with full information about the costs of your financing.

Research Meridian Idaho home listings online

Define your housing criteria in detail, including a list of “must haves” and a “wish list” of desired optional features.

Then, use the MLS Search function (above) on this blog to search for listings that match your criteria.

I don’t require registration to view listings on this blog, and I will NOT pursue you!

If you want details on a specific listing, just e-mail me or call me at (208)938-5533 for more information.

Hire a buyer’s agent

Commit to one agent, then let them find suitable properties to consider.

Sign a Buyer Representation Agreement (upfront) to ensure that your agent will devote serious attention to you.

Your buyer’s agent will be able to search MLS and see information that isn’t visible to the public.

Work, in partnership, with your buyer’s agent to identify and research properties of interest.

Earnest Money

Sellers are skeptical of offers without earnest money, so bring your checkbook when you come to look at homes.

If you don’t use checks, be prepared to get a cashier’s check, wire your earnest money, or overnight it.

Promising to provide earnest money two days after your offer is accepted will not impress a seller!

Offering substantial earnest money may help to get your offer accepted; especially in a multiple-offer situation.

While earnest money is somewhat symbolic, sellers are often impressed by substantial earnest money.

Your earnest money will be applied to your “cash to close” funds, so why not impress the seller with more earnest money?

Make an offer contingent upon your inspection/approval

Some (few?) sellers will accept an offer contingent upon your personal inspection.

In those situations, you should make your contingency period as short as possible to increase your chances of acceptance.

Have friends or relatives look at the property

If you aren’t here when the right property pops up, have a local friend or relative look at the property for you.

Then, make an offer based upon their input.

Trust your agent and buy it sight-unseen

Another option is to make an offer based upon your agent’s advice and recommendations.

This requires tremendous trust and confidence in your agent and is often uncomfortable for both buyer and agent.

I’ve helped a number of out-of-area buyers purchase homes sight-unseen, but I’m never comfortable with that scenario.

I do NOT recommend this option!

Buy a “to-be-built” or “under-construction’ new home

Buying a new home that is yet to be built, or under construction, is often a good option in a hot market.

Most of our builders are quoting a six-month delivery time for a new home that has yet to be started.

Homes that are under construction can provide faster delivery times.

One advantage of buying a new home is that you may be able to make selections and get exactly what you want.

And, buying a home that is under construction may give you time to sell your present home, if needed.

You may also avoid multiple-offer bidding wars by buying a home that is “to-be-built” or “under construction”.

Final thoughts . . .

A desirable property will attract strong, immediate interest from other buyers.

Savvy buyers have learned, from experience, that they must act quickly to achieve an accepted offer.

Be prepared to offer more than the asking price if you want to be competitive.

Hot markets are challenging, but they’re a fact of life in the Meridian real estate market these days.

If you have questions, please give me a call at (208)938-5533 or e-mail me!

 _______________________________________________________

Phil Hoover is a licensed independent Idaho real estate broker, assisting both buyers and sellers in Boise Idaho, Meridian Idaho, and Eagle Idaho.

During his 44 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.

Phil is one of only ten local Realtors^® (of nearly 5,500) honored with the coveted “Realtor^® Emeritus” award from the National Association of Realtors^®, recognizing 40 years in real estate.