Down, set, HUT HUT HUT!


If we learned anything from the market in 2021 it was to be ready when opportunity presents itself.  Inventory was low and buyers were plenty.  The low number of sellers, interest rates remaining low, and plenty of buyers made for a seller’s market.  Buying a home in 2022 could mirror 2021 so we want our buyers to be ready. Here’s how.

1.  Have a plan-  Get a quote from a trusted advisor and figure out what product works best for your situation along with the loan amount you qualify for, how much you want to put down, and what you want your monthly payment to be.  Go over estimates for different purchase prices so you know how much you are comfortable spending.

2.  Get pre approved- Go through the process of getting the paperwork you need to make your offer.  When your dream home hits the market make sure you can move quickly.  You already know how much you can afford and are comfortable with, so have your paperwork ready to go.

3.  Assemble your team- You will need an active agent monitoring the market for new listings along with your mortgage professional.  Working together we can get your offer customized and to the seller right away, increasing your chances of a successful contract.


Enact your game plan.  A sellers market has other challenges for which to be ready.

1.  Over asking price offers- Many offers this year have been over the asking price.  Be ready to have this conversation with your agent.  It seems strange to offer the amount the seller is asking with a solid pre approval and get beat out by a buyer that offered over the asking price.  I worked with many buyers this year that were more than frustrated when they got beat out by offers that were over asking price.

2.  Cash is king-  A lot of homes were purchased with cash last year.  Sellers and their agents know that a cash offer can have less issues than a financed offer.  The buyer is in control of whether they perform on a purchase contract without having to ask a bank or mortgage company.  They can close faster in many cases and the property doesn’t have to be inspected and appraised, although even cash buyers inspect in most cases.

3.  Appraisal deficit- Homes are usually priced at or close to their market value.  So when you have over asking price offers, that can result in a deficit between the purchase price and appraised value.  A mortgage loan is based on the lower of the two, so, if you are paying more for a home than the appraised value as determined by an appraiser, you have to make up the difference with cash.

4. Accepting property AS IS- Property deficiencies can be uncovered by the home inspector or the lender’s appraiser.  In normal markets you get the opportunity to renegotiate the sales price, or request repairs to resolve these deficiencies.  In a seller’s market like we saw in 2021 many buyers were waiving the ability to ask the seller to fix any deficiencies.  They could still inspect the home, but they would only make the decision to accept the condition or cancel the contract.  You will need the advice of an experienced Realtor to navigate this process.


As the owner/broker of First Assured Mortgage and 20 years of mortgage lending experience, I have developed several strategies that can help you get your offer accepted over another buyer.  As always we are committed to offering our customers the very best mortgage rates through our network of the very best banks and mortgage companies.  When you are ready to assemble your team, begin the process by contacting us or applying online.


Joel Kaczor




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