Are you in the process of buying a home? You may have discovered that we are in a very competitive market right now. Many houses will sell in one day with multiple offers. This can be a frustrating time for many home buyers, but, with the right “ingredients” you will be “cookin’ with fire” in no time. So, without further ado ....
Here are some Tips on How to Get Your Offer Accepted on a House:
Be the First and the Best out of the gate
Gone are the days when you have a lot of room for negotiation on price. If you like a home, if you want to own that home, you need to offer full price (if not more). It is important that you work with your Real Estate Broker to craft an offer that will show your true level of interest through the price. However, do keep in mind, if you are making an offer over the asking price, you will want to consider the home value and ensure you are not paying more than the home is worth.
Add an Escalation Clause
An escalation clause says that you will “outbid” any other offers by a certain dollar amount. For example, “Buyer will pay $500 over any offer up to $250,000”.
Prove Your Buying Power
If you are going to be buying the home using a mortgage (FHA, VA, Conventional, etc) you will want to include a strong lender letter. Your mortgage lender should be able to write you a letter that indicates that you have been pre-approved (or pre-qualified) for a certain dollar amount. Make sure you are buying something that is within your budget.
Cater to the Seller
Ask your Real Estate Broker to find out what aspects of selling the home are important to the sellers and create an offer that helps facilitate this. For example: do the sellers need to close within a specific time frame?
Raise the Stakes
If financially possible, consider offering a larger earnest money deposit to the seller. Ultimately this money will come back to you at closing, however, it shows that your interest in the home is serious. Additionally, considering a larger down payment on the home will show the seller that you are financially strong and also benefit you in that you will not have to finance as much.
Make It Personal
In Real Estate you will always hear that it is important NOT to make it personal, this is a business transaction. Now, for about 99% of the transaction this is 100% true. Ultimately this is a financial investment and should be treated as such. BUT, in a multiple offer situation it can be extremely helpful to bring in that personal touch. Write a letter to the seller and let them know who you are, why you love their house, and in what ways you imagine your life in that house! Perhaps you want to raise your family there and can picture huge family garden parties in the spacious backyard. Perhaps you love the open concept kitchen the sellers just installed and cannot wait to cook Thanksgiving dinner there. Even still, maybe you see the potential of the home to be grand with just a few loving updates.
The best bet when writing an offer is to
keep open lines of communication with your Real Estate Broker.
We know the ins and outs of the “offer writing world” and are always ready to offer sound advice on How to Get Your Offer Accepted on a House.
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