So you’ve found your dream home, and you’re ready to buy it and make it officially yours. But if you’ve done your research, you’ll know just how hard it is to get your offer accepted in today’s real estate market. But fear not — here are five tips to get your offer accepted.
There are more buyers in today’s market than there are homes for sale, which can make the whole process of buying a house more difficult than it should be. It’s a competitive market for buyers, as some homes go under contract within a few hours while others attract multiple offers.
To help you get your offer to stand out from the rest, here are some tips to get your offer accepted.
1. Get Pre-Approved and Show Proof
If you’ll be getting a loan to use to buy your home, getting a loan pre-approval can be a huge help to getting your offer accepted. Provide proof that you’ve been pre-approved with your offer, and the seller will be thanking you for thinking in advance.
The pre-approval letter simply shows the seller that you’re serious about buying the home. Additionally, the letter tells the seller that you won’t have to wait for a long time before you’re able to get a loan.
Although the pre-approval letter isn’t a loan commitment, it shows the seller that you qualify for a loan of a certain amount. All of this will help the seller feel more confident in your financial ability and intent to actually buy their home.
2. Offer More Earnest Money
Today, the common practice concerning earnest money is offering 1-2% to the seller as a good faith deposit. If you want to let the seller know that you’re serious about buying their home, you can offer more money to prove it. However, keep in mind that there’s a chance of you not being able to take your money back if the deal falls through.
3. Know The Seller’s Motivation
For most sellers, price is not the only factor they consider. Sometimes, some sellers need to prioritize selling quickly over anything else. Other times, they could need more time before closing. If you can find out what the seller’s motivation is, it’ll be a massive help to you when it’s time to decide on your offer.
4. Shorten Due Diligence
To make it easier for the seller to choose, you might also want to consider shortening the due diligence period when you would be doing the property inspection. In particular, having a shorter due diligence period than other buyers can make you stand out more.
Written contracts usually allow buyers some contingencies — ways to back out during the inspection period. This means that a longer due diligence period gives the buyers more time to back out of the deal.
5. Make the Offer As Clean As Possible
The simpler your offer, the easier it will be for the seller to potentially accept it and close the deal. By “clean,” I mean having a loan pre-approval letter before going on the market, a shorter due diligence period, and an appraisal contingency. However, this does mean not including other contingencies like the purchase is contingent on the buyers needing to sell their house or asking for any closing costs to be paid for by the seller.
The real estate market is more competitive now than it was a few years ago. To make your offer stand out among all the other offers, it’s necessary to take a few extra steps and risks to get you the house you want.
Now that you’ve learned five tips to get your offer accepted, you’ll have a greater chance of having your offer taken if you did everything right. However, keep in mind not to expect that following all the five tips will guarantee your offer will be accepted out of all the others. Sometimes, there are better offers, but don’t lose hope. You’ll have the keys to your dream home in your hands in no time.
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