When you are making an offer, put yourself in the shoes of the seller and consider what it takes to write an offer that gets the seller’s attention, especially when competing with other buyers for the same home. Here are some things to consider:
Strong purchase price and financial position – For many sellers the price is the most important consideration. Therefore, we will evaluate market values in the area to help determine a fair price so you can feel good about making a strong offer. Sellers also like to see a strong purchase price backed up by a strong down payment and earnest money. Additionally, get pre-approved from your lender and include your pre-approval letter so the seller will be more comfortable in your ability to obtain a loan if applicable.
Close Dates– Knowing what the sellers want in terms of a close date and being able to accommodate that can help put your contract on top. Lenders that can close quickly can help you compete with cash in competitive situations.
Limit Contingencies – “Contingencies” are provisions in the contract which specify the terms in which the contract would be voided if certain events do or do not occur. The most common home purchase agreements contingencies include:
Financing – would nullify the contract if the buyer cannot obtain a loan.
Inspection – would nullify the contract if the buyer does not feel he or she can handle the inspection results when major repairs are needed or the buyer and seller cannot meet eye to eye regarding what will be fixed before the property changes hands.
Sale of the buyer’s current home – would nullify the contract if the buyer cannot sell their current home by closing as the buyer would not be able to finance two properties at once.
Title – would nullify the contract if there are covenants, easements, etc. that could affect the use of the property.
Think Outside the Box – Consider other perks that might appeal to a seller like allowing the seller to leave some items behind or having the buyer be responsible for the final cleaning. Those are two small concessions that can ease the seller’s burden of getting out of the house and make your offer more compelling.
If you were intrigued by the above suggestions, I have a lot more in my toolbox! The type of home you are buying and the market will dictate the offer we make, but each market, product, and buyer and seller take a unique strategy!
