Peabody & Smith Realty - 2021 Buyer Tips

2021 BUYER TIPS
The Keys to a Successful Home-Buying Experience

READY, SET, BUY!
What does it take to be a successful buyer?
Today’s real estate market has high home-buyer interest and low housing inventory. With so
many buyers competing for a limited number of houses for sale, it’s more important than ever
to know the ins and outs of making a confident and competitive offer. This guide will answer
the questions you may have and give you the knowledge to successfully navigate through the
home-buying process.
Working with a Peabody & Smith Realty agent who understands today’s fast-paced and everchanging
real estate market is going to provide you with the best possible outcome towards
your home ownership goals. Your agent has a wealth of knowledge and is experienced at
negotiating the best terms for you and navigating through the following:
Fast notification of new listings that fit your criteria
Setting up timely showing appointments
Crafting a strong offer
Working with reliable local resources
Explaining and guiding you through the nuances of the purchasing process from
beginning to end

Understanding the Market
Get Pre-Approved
Having a complete understanding of your budget and how
much house you can afford is essential. The best way to know
this is to get pre-approved for a loan early in the home-buying
process. Only 44% of today’s prospective home-buyers are
planning to apply for pre-approval, so be sure to take this step
so you stand out from the crowd. It shows sellers you’re a serious
and qualified buyer and will give you a competitive edge if
you enter a bidding war especially if there are multiple offers.
Don’t assume that a pre-approval which was done 3 months ago will still be viable. In this
ever-change market, this step is a very important one.
NOTE: A pre-qualification evaluates that you’re credit-worthy. Although this is a first step, it is
important to also take the second step to pre-approval. A savvy Seller will understand the difference
between the two letters. A pre-approval letter is the next step to saying “you’re approved”!
Speak with your lender to learn more.
Understanding your real estate market allows you to establish and
evaluate the price of a listed property and help you make the right
decisions. Some of the things to look at:
Search the Data – this will afford you the opportunity to get/stay
informed. Set up a portfolio on our website to get the latest updates
of new listings, under contracts, etc. that fit your parameters, allowing
you to stay up to date on pricing, and activity.
Use the Internet to your benefit – it’s not only about searching
homes. Stay informed on what’s happening in the community. Are
there new zoning changes? Real Estate changes? The use of local
news, community websites, social media, and even blogs are important.
Consider Key Market Factors that pertain to you - Questions you should ask yourself. How long
do I plan on living in this home? How important are school systems, employment opportunities,
growth in the community?
Understand Market Cycles - It is very important to know real estate market cycles. It is also
important to understand the ebbs and flows in the real estate market in general but do a deeper
dive into the area of interest to you. Are there changes in the community(ies), that will be a
factor to changing prices?

Q & A - The Real Deal in Today’s Market
Over the past year, the process of purchasing real estate
has changed in many ways. There have been frustrations
that were not issues prior to the pandemic. The following
statements and questions are a reflection of what agents
are hearing and we think it is important for you to know
what to expect when looking for your own slice of heaven
in the Northern, Central & the Lakes Region of New
Hampshire as well as the Northeast Kingdom of Vermont.
So, let’s get started.
“I don’t need an inspection.”
Really understanding what this means and your responsibility if there are
issues down the road.
Home inspection is an examination of the condition of the property. A licensed home inspector
can assess the condition of a property’s roof, foundation, heating and cooling systems, plumbing,
electrical work, water and sewage, etc. A home inspection is something to protect your financial
interest in what will likely be the largest purchase you make in your life and one in which you
need as much information as possible.
Offers that waive a home inspection contingency can be more attractive to home sellers since
there is less likelihood the buyers will find a problem that the buyer demand is fixed before
moving forward. Waiving a home inspection is also done to speed up the closing process. While
we do not recommend waiving a home inspection, if you’re concerned about a multiple offer
situation, you might add a condition that allows you to do the home inspection at your expense,
with a statement that you are doing so for your own information, and will not renegotiate
the price or terms base upon the findings. You will then have the opportunity to understand
the upcoming expenses of maintenance, should there be any. Further, you can also consider
bringing a person that is well versed/knowledgeable in construction that may also set your mind
at ease if you are considering waiving a home inspection. By doing this, it may put your offer in a
more competitive advantage to the Seller.
With this approach, if there are any major issues that arise from the home inspection, you can
still opt out of buying the home. Performing a home inspection will give you peace of mind for
your investment.

“I would like to see this property NOW”
Demanding a same-day or short notice showing.
Each seller has different showing instructions. We ask that buyers be respectful of the listing
agent, buyer agent and sellers need. Please remember gaining access to someone else’s home
is a privilege and comes with the permission and guidelines set by the seller. Agents will
do their best to get your preferred day and time to see the property but that we need to be
respectful of each individual guidelines. Video tours are possible on many properties.
Understanding Offer Deadlines
Writing an offer and signing the proper documentation
takes time. Plan for this and don’t wait
until the very last minute. The success of your
offer may depend on it. A New Hampshire or
Maine contract to purchase property is a legally
binding agreement with many considerations.
Property disclosures serve to notify a buyer of
the properties condition, ongoing costs and
occasionally benefits of the property. These disclosures should be read and understood by
the buyer as you may lose your ability to address an issue later.
Work with your agent to present an offer that will be strong for the seller to consider while
offering you the protections you require to move forward. Review and understand each
page you are signing as each document has significance to your purchase.

“Why wasn’t I told about that property?
How did it go Under Contract so fast?”
Our agents strive to be current and knowledgeable
with all listings as they become available. Listings
become active through the multiple listing system
24 hours a day. Once a property is on the market
there are potential buyers and agents already interested
in a property by several different avenues:
• Seller has shared their intent to sell with neighbors, friends and family
• For Sale sign is placed on the property
• Property is listed on multiple property searching websites
Many properties in today’s market are receiving multiple offers in less than 24 hours and
sellers have the option to accept an offer immediately or wait for a few days before reviewing
multiple offers. Each seller has a different circumstance on how they want to handle the
selling of their home.
“Why wasn’t my offer accepted? I was well above the asking price.”
When a property is listed, a Seller has specific selling needs that we may not know. Although
many think offering a higher price is what drives a seller, that is not always the case. Other
items that may be significant to a seller:
• No financing contingency
• No building inspections
• Flexible closing date
• Better terms
• Proof of funds along with the contract
To be in the best possible position to make an offer, buyers should have their financing
secured with a pre-approval letter from your lending institution. This will show the seller that
the buyer is serious and ready to move forward. Buyers should also consider having “proof of
funds” for cash purchases to present with offers. Buyers should know that an offer encompasses
all variables of the buying process and each may be of different importance to a seller.

“Do I really have to overpay that much
to win the bid?”
With multiple offers on a property, you will be
asked to put your best foot forward on the first
offer. An offer has many factors along with price.
Working with your agent to craft an offer that
fits your risk tolerance is the best course for you.
As mentioned, price is not the only factor that
wins bids. It is a combination of many factors.
Sales over the asking price are common at this
time but you and your agent have multiple ways
to present a strong offer.
“What does it mean that the property won’t appraise out and I have to bring
cash to the table?”
When the home appraises for less than the purchase price, it affects your mortgage, and can
affect your contract, too. Mortgage lenders use the appraiser-determined value to input the
“value” part of your mortgage’s loan-to-value (LTV) calculation. If the appraised value is less
than the purchase price, lenders use that value to determine your LTV. Unless the seller agrees
to lower the price, you will have to increase your down payment to get the same mortgage
and interest rate.
When your home appraises for less than its purchase price, there are a few potential outcomes:
• Seller and buyer renegotiate a new, lower home sale price
• Buyer increases the down payment to meet new LTV and down payment minimums
• Seller and buyer cancel the home purchase contract
With multiple offers on a property, it may be
difficult to get the Seller to reduce their price
as they have a line of buyers. Each situation is
different and the property may be worth the
added money for your specific personal wants
and needs. Either way, you will be able to make
an informed decision that works best for you.

The best way to ensure your home-buying
process is a confident one is to find a knowledgeable
real estate professional who will guide
you through every aspect of the transaction.
We have 33 full-time, experienced, market savvy
REALTORS® ready to assist you thru the steps
towards a successful home-buying experience.
Let’s connect, today!
Bretton Woods Office
9 Remick Lane
Bretton Woods, NH 03575
(603) 259-0210
Franconia Office
383 Main Street
Franconia, NH 03580
Phone: (603) 823-5700
Holderness Office
850 U.S. Route 3, Curry Place
Holderness, NH 03245
Phone: (603) 968-7615
Littleton Office
11 Riverglen Lane, Suite 200
Littleton, NH 03561
Phone: (603) 444-1294
Plymouth Office
620 Tenney Mountain Highway
Plymouth, NH 03264
Phone: (603) 238-6990
www.PeabodySmith.com