It's a hot housing market right now. And with more cash offers and faster closing times than ever, some think it's too hot to touch and are holding back on buying until things cool off.
Ron Erdmann, founder of the Cincinnati-based Erdmann Group at Guaranteed Rate, says knowing the process and your options - especially new options out there that have adapted to this new market - can help you in a competitive seller's market.
In fact, The Erdmann Group has what they call Power Bid. "Through a Power Bid, we are able to get all of the paperwork out of the way ahead of time by verifying income and everything else, which would get a house under contract faster and give sellers a 10-day closing once an offer is accepted."
Erdmann says that by doing everything upfront, they're verifying with the seller that the loan can close and it can close on time. "Those are some of the biggest perks of a cash offer, so this helps a financed offer compete on that level, too," says Erdmann.
It also helps when you have banks competing for your business. "We've been doing business here for nearly 10 years," explains Ron Erdmann. "We specialize in mortgages and work with 30 to 40 banks to help give our clients the best interest rate and the best available options when the buy a home."
With a lack of inventory, Erdmann says, it’s not uncommon to see many buyers running into issues when securing an accepted offer from a seller. “This is where we ensure that we're educating our clients on the process, so that they know what to expect and we know what to expect when it comes to the details of making an offer on the home," he explains.
One of the best ways that The Erdmann Group educates clients is by helping them to understand the seller's perspective. “You have to look at it from their standpoint,” he says. “Buyers are willing to pay different prices, but price aside, sellers are also going to look at how the home is being purchased, and that can be play a big role in whether or not your offer is accepted.”
Erdmann also hosts events, lunch 'n' learns and other educational opportunities around town to educate the community about the market and mortgage options.
To learn more about Ron Erdmann, NMLS 728342, Branch Manager and SVP of Mortgage Lending at Guaranteed Rate, visit here. You can also contact him via email at firstname.lastname@example.org or call (513) 609-4484.