With the current real estate market being as competitive as it is due to the lower mortgage rates and rekindled interest in the market, most buyers find it irritating to spend weeks and weeks looking for the perfect home for them only to discover the house has six different offers. It’s an infuriating and time consuming process that can drive most buyers crazy. Here are some tips that can make your offer stand out.
Pre-Approval
Getting yourself pre-approved from a reliable lender signifies you’ve given your lender your personal financial data and that lender has given your info to an underwriter for approval which leaves a clear title and the home appraisal as the only criteria left.
Getting pre-approved displays to the seller that you’re earnest about purchasing their home. After an offer is accepted the home is taken off of the market and it will be unattainable to other buyers, the seller won’t want to take their home off the market unless they have a buyer they know will be reliable and having a pre-approval from a dependable lender will make your offer much more appealing than rest of them.
Have an Experienced Real Estate Agent
Purchasing a home is a enormous investment, but sometimes you can feel obligated to work with an agent that was recommended to you by a friend or family member, but you need to find a realtor that’s qualified for you and the homes you’re looking at. The experience and knowledge you’ll gain from a qualified realtor will save you money and time and can give you a superior position when going up against other offers.
Don’t Try to Bluff for a Better Price
Before your offer is given to the seller, your agent should have pulled comparables for the house you’re interested in which should have given you an idea of how long similar houses in the area have spent on the market and what they’ve sold for. These factors will go into the estimated sales price of the house you’re looking to buy. If everything goes fine and the home is assessed at a price in line with recent sales and there are no indications of extra maintenance that could cause delays, all that remains is to make an offer.
Bidding 25 percent below the asking price of a home that’s appropriately priced and in decent repair can be a huge slight to the seller and you may end up with them rejecting your offer instead of giving a counteroffer, and while you’re trying to haggle with the seller, you’re leaving the door wide open for other buyers to come in with better offers. This doesn’t mean you have to pay the asking price right away, but make sure you pay close attention to the numbers and don’t try to lowball the seller.
Put Down More Earnest Money
Earnest money, or escrow, depending on where you live, is money deposited in good faith that tells the seller you’re earnest about buying their home. The more money that’s put down, the more seriously the seller will take your offer. Remember that the seller is looking for a guaranteed buyer before they take their home off the market, putting down more money will show them you mean business, and you won’t lose the money if you close.
Contact the Listing Agent
Having your lender in communication with the seller’s listing agent and having them explain that you are a genuine buyer and your credit has been pulled and you jobs have been verified, can bring your offer to the top of the list. Having your lender contact the listing agent will also introduce the lender to the agent, and a proficient lender can reassure the agent and by extension, the seller.
Be Accommodating at Closing
After you make an offer, there are several factors you’ll have to consider about the seller. If the seller requires more time to find another place to live, or is relocating across country, be as flexible as possible. Your consideration could mean more to the seller than a greater dollar offer. Have your agent call the seller’s agent before sending over your offer and have them explain that if the seller wants or needs more time to at the time of closing, you’re willing to be flexible. This will put less pressure and stress on the seller during their moving process, which is something every seller would like.
Shorten the Inspection Period
There are a few points in the contract where the transaction can go bad for the seller and one major point is the inspection period. By decreasing the time for the inspection process you cut down the time for you to remove yourself from the deal. You can add to your offer that you’re looking for only major problems in the home and any other shortcomings you are willing to accept up to a certain point. This will reassure the seller you are not going to back out of the deal or ask them to repair a list of small items.
Meet the Sellers If You Can
Meeting the sellers can either be a good idea or a bad idea. If you really want to buy the house, ask if can meet the sellers when you come to view the house. Putting the personal touch into your dealcan go a long way to improving the transaction.
Make a Higher Offer
Making your offer and having it be accepted involves many factors beyond the price, but if you find your offers keep getting cut off by bigger ones you might want to think about increasing your offer. This isn’t something you should lead with, but sometimes a home is priced below market value in anticipation of multiple offers. After you get your comparables and know that the home is priced under market value, make an offer that’s closer to market value and make it an odd number.
Most people think with even numbers, so instead of sending an offer of $252,600 send an offer for $254,760, as a home can be won by just $50.
If you pay too much for a home and you’re getting a mortgage, it might mean you’ll have difficulty passing your appraisal and this is where your experienced Realtor will pay off, as they’ll know the market values of the areas and homes you’re looking into.
Knowing the steps to making an offer ao n a home and communicating with your Realtor will help you get through the home buying process and will save you time and money.
If you’re ready to buy a home, contact The Sandi Pressley Team today.
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