Being a homebuyer in a hot market can be just plain overwhelming. You have the potential to fall in love with a house and have it whisked away by another buyer. No one wants to lose a home they love if at all possible so here are some tips to help make sure your offer gets accepted.
1. Don’t Make a Lowball Offer – When house shopping it can be tempting to throw out a super low purchase price to try and snag a killer deal. The truth is this rarely works and often leaves a bad taste with the sellers. In fact, if there are multiple parties interested they may not consider your offer at all and simply move on to negotiate with another buyer. You certainly don’t need to offer full price and you should absolutely discuss the market value with your buyer agent but try to come in with a well thought out and fair price.
2. Get Pre-Qualified – If you find a home you love before getting a pre-qualification it can cause a major delay in submitting your offer. Pre-qualifications can be done quickly but once you’ve found a house you love, you don’t want to wait to make an offer and risk that someone will make one before you. Most sellers won’t accept an offer without a pre-qualification letter.
3. Pay For Closing Costs – These days many buyers ask the seller to cover the closing costs. For some buyers, having the closing costs covered makes it possible for them to purchase the home. For others it’s simply a tactic to get the price lower. Asking for a seller to pay closing costs complicates the offer. If it’s not absolutely necessary, simplify the offer by listing a price you are comfortable with that doesn’t have additional reductions attached.
4. Reduce Contingencies – Another tactic that should only be used by highly qualified and experienced buyers is to reduce the contingencies attached to your offer. If you have extra cash available to you it may make sense to remove the financing contingency. This contingency lets a buyer out of the commitment to buy the home if their financing falls through. Waiving it shows the seller how serious you are as well as the resources available to you. It is the sign of a highly qualified buyer. Make sure you discuss this with your lender and buyer agent before deciding to forego this contingency.
Another contingency you may waive is the home inspection. This can be a risky move so another option would be to shorten the inspection period. Instead of making the seller wait 15 or more days until the inspection period is over, consider shortening the period to 7 days and get an inspector out to the house in 24-48 hours after making the offer. This will be seen favorably by the sellers.
5. Make it Personal – Sometimes the very best way to make your offer stand out is to sell yourself. Real estate is typically a very professional transaction so if you take the time to write a heartfelt personal letter to go along with your offer it could be the difference between having your offer accepted and losing out to another similar offer. Tell the sellers about yourself, your family and why you want to buy their home.
These tips can help your offer stand out among other offers. But before you make any offer, consult your buyer agent and discuss your options and the property itself. They can provide expert help as you navigate your real estate transaction.