Want to put in an strong offer? Here’s how:
- Get prequalified. A true way the seller knows that you are serious about buying a home is having a prequalification letter ready to go. Without a letter from a lender, you have no bargaining power and more than likely won’t even get your offer looked at.
Work with an experienced agent. In a seller’s market an experienced agent may be able to get your offer accepted quicker than a brand new agent especially if you are in a bidding war. Knowledge is power. Working with a real estate agent can save you time and stress. The seller is paying the real estate agent when buying a home so why would you not use a professional to find you a home.
- Make your offer as clean as possible. That means your offer should not be contingent on the sale of another property. If you have a current home and are putting in an offer on a new home, see if you qualify for both mortgages. To make a stronger offer, lower the seller concessions or get rid of them all together. Seller concessions are things that a buyer asks for outside of the offer price, like closing costs and home warranties.
- Consider waiving inspection or shortening the contingency period. This means that if you are unable to find a mortgage, you can’t ask for your earnest money deposit (EMD) back. If you shorten or waive the inspection period, it shows the seller that you mean business and really want the house!
- Offer above-asking. When housing inventory is low, it is not the time to make low offers and hope that the sellers take it. You will have to make your offer strong enough to beat out a multiple-bid situation. If you really want the house, you’re likely going to have to go above the asking price in certain situations.
- Put a larger Deposit down. Earnest money deposit is your proof to the seller that you are good-faith buyer. The usual $500-$1000 deposit may not be enough to really tell the seller you want to buy their home. Putting a larger deposit down shows that you are a serious buyer and that you fully intend to purchase the property.
Waive the appraisal contingency. This is a huge one in neighborhoods that are experiencing a resurgence in property values or interest. An offer to bring the money to the table if the home doesn’t appraise can set your offer apart from the others. You will have to come up with the difference out of pocket so make sure you have enough funds in case and are in a strong financial situation.
- Make a larger down payment than is required in your loan program. Let’s face it, the larger the down payment the more likely your offer will be accepted. With our VA loans and zero down options, if your down payment is 0, then put in a larger earnest money deposit offer which you would get back at closing. No matter what type of loan you choose, offering more than is required is another sign that you are ready to buy to the seller.
- Add an escalation clause to your offer. An escalation clause means that your offer will outbid other offers up to a maximum price. This means that you make an offer saying you will pay a certain price for a home, but if a higher offer is received, you will increase your offer to a maximum new price.
- Closing Time. Each seller has a different reason for wanting to sell their home. Your agent can make an offer closer to the goals of the seller. Make sure your offer isn’t too far off or too early. The seller may need the funds from the sale to purchase their next home which will have a timeframe as well. It’s best if you can find out what the seller’s desires are, then have your agent accommodate the closing date.
We hope you get your offer accepted. Please contact us with any questions. Happy house hunting and make it happen.