How can I increase my changes of winning bid on bargain properties?  The Nov. 30 deadline is approaching for the $8k tax credit.  Many first-time buyers find themselves competing with multiple offers on bargain properties. Short sales are taking months and many are failing to finalize. Appraisals are falling short of sales prices kiling the transaction.  Foreclosed houses often need repairs that disqualify them from federally backed mortgages or even conventional mortgages for that matter. Here are some steps you can take to increase your chances of closing on a home:

1.  Have your Realtor set up automatic emails for you. In real estate the early bird gets the worm.  With automatic emails, you will receive an email the day the property comes on the market or the day the property status changes. This is the best way to make sure the listings are active and available when you receive them.  

2. Stay away from properties that do not qualify for FHA or VA financing.  Have your Realtor send you only properties that qualify for those types of financing.  Most good listing agents learn to properly classify the types of financing their listings will qualify for.  Most good buyers agent learn to identify problem properties.  It can be very frustrating, fruitless & costly for any buyer who enters into a contract thinking the property will qualify for a certain type of financing and at the end discovers it does not.  By that time the buyer has spent money on option fee, inspections & sometimes appraisals that he can’t recoup, not to mention the wasted time.  

3. Grade all the homes based on your specific criteria (ie no.of bedrooms, bath, location, square footage, etc.).  Schedule an an appointment immediately to view the homes that you are most interested in and that have received your top grade. 

4. When you visit the proprety, you and your Realtor need to keep in mind the minimum property standards for your approved financing.  For FHA and VA financing any deficiencies dealting with health, safety and structural must be corrected before the property will qualify.  For conventionaly financing, the property must receive an average rating from the appraiser.  Research the comparables and be prepared to make offers based on the numbers and property condition. 
 
5. Place several offers on homes that you are most interested in.  Make sure that all the offers have option periods which allow you to back out of the sale in case more than one offer is accepted.

6. If the property is a short sale, ask if the seller is aware of any needed repairs or has obtained approval from the bank.  Inquire if there are any second liens on the property.  Required repairs can be a deal killer.  If the seller has to obtain approval from both the first and second lien holders, then it will most likely be a long process.  Also, if the bank previously approved the short sale, you have a much better chance of closing on the property.  Stay clear of all short sales with first and second liens and where approval has not been received.

7. Get your financing in order.  Make sure your credit score, job, assets meet the guidelines and keep it that way throughout the entire process.  Have all required documentation ready.  The days of easy credit are over.  Lenders are now scrutinizing every line on the application and want full documentation.  

As the November deadline nears,  keep in mind that it’s better to wait and find the right property than to rush in simply to take advantage of the $8k tax credit.  There are many challenges to finding a bargain property.  However, if you follow these recommendations, you will increase your chances of not only winning the bid but getting to the closing table.