Six Ways Buyers Can Turn Up the Heat and Make an Offer Sellers Can’t Resist

6 May

When you’re in the midst of a seller’s market there really is very little you can do but just watch the market, find the right home and jump on it! Because if you don’t, there’s a good chance someone else will beat you to it. But if you are making an offer, there are some ways you can make it one the sellers can’t refuse. Here are six key strategies to use as a buyer making an offer on a home in a very competitive seller’s market.

Prove Your Ability to Pay
Gone are the days when you could present an offer on a home with the expectation that you would apply for a loan after it’s accepted. Even when we’re not in the midst of a seller’s market, sellers today expect to see proof of your financing or funds. They want to know that your offer is a viable one and having a preapproval from a lender gives them the peace of mind needed to proceed. Unlike being prequalified, preapprovals entail a credit pull and a look at your financial position, including things like debt-to-income ration, job history and more.

Make It Reasonable
As you may already know, an earnest deposit accompanies an offer. So as you decide the amount to put toward your earnest money deposit, be sure to be reasonable. Typically 1% of the purchase price, you can go up or down depending on your interest but generally, you should stay at or above 1%.

Don’t Lowball the Offer
There was a time when buyers could get away with making lowball offers but those days are long gone. Contrary to popular belief, making a reasonable offer will increase your chances for stronger negotiations. A higher offer is the better offer because you won’t offend the seller.

Go Easy on the Contingencies
When buying a home there can be a lot of contingencies in place ranging from waiting for the sale of another home, to inspection results to mortgage contingencies as well. Some are unavoidable but whenever possible if you can reduce the length of time for some of these processes or better yet, eliminate the contingency altogether – the seller will be more inclined to accept your offer.

Keep It Simple
Rather than bog down your offer with complex language that is hard to read and complicated to understand, make it as simple as possible. There is no need for legalese and if you can, put things in bullet point form to really make it easy for the seller. Less is more but be sure not to leave out anything important.

Make It Personal
Sometimes multiple offers will come in and they are all very close to one another in price, terms and contingencies. Believe it or not, these are the opportunities for buyers to turn on the charm – literally. Write a personal letter explaining what you love about the house. Introduce yourself to the seller and do it in a handwritten note or card that will be memorable to them when they are considering all offers.

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Keep in mind, no two offers are the same and no two situations are the same – so you will benefit from having a strong Realtor® by your side, working in your best interests. Contact us today so we can work to getting you the home of your dreams!

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