There are few things in life more exciting than finding the right home and submitting an offer. Weeks or even months of searching finally pay off as you take that final step. Unfortunately, you may not be alone…others could have already put in offers of their own. A competitively priced home in a hot market can receive countless offers within hours of being listed, so it’s imperative to make sure your offer stands out! How can you do that? Follow these general guidelines.
1. Be Prepared to Act!
Oftentimes there is no way of knowing how many other people are seriously interested in a given property and are preparing to submit an offer. In a seller's market, you could be competing with many other buyers. It’s important to be informed. Stay up-to-date on the fair market values of homes similar to what you’re searching for, and shop within a budget you know you can afford. Being prepared will allow you be able to make an educated decision before rushing into a real-estate deal and may also minimize hesitation…or else your offer may come too late!
2. Open Your Offer With a Fair Price
As the buyer, you want to spend the least amount of money possible, and the seller wants the most they can get. Is it possible to satisfy both parties? In many cases, the buyer may want to start low and then negotiate their way up towards a number that satisfies the seller. However, in a situation where you think there may be other offers already on the table, you may want to start higher. This opens a positive chain of communication with the seller. It shows you’re serious about making the purchase and value what they’re selling. Making too low of an offer can mean your offer is totally ignored in favor of more reasonable starting points. Use recent sales in the area for comparable homes to better arrive at your offer amount.
3. Get Pre-approval
Nothing lets a buyer know you’re serious like knowing an offer has already been pre-approved by a lender. Sellers tend to favor offers from buyers who have the mortgage pre-approval in hand.
4. Have Reasonable Terms and Conditions
Contingencies are included in many offers, such as appraisals, inspections, and even contingent on the sale of a current home. These conditions are there to protect both the buyer and seller, but may not always be necessary. Choose your contingencies wisely.
5. Leave Room for Negotiation
Dollar amounts aren’t always the only thing considered when comparing offers. More generous timelines for repairs and relocation can appeal to a seller. While you may personally want to hurry through the proceedings so you can move into your new home, not all sellers will be in the same rush.
Keep these tips in mind when considering making an offer on what could be your next home. By working with your lender and agent, you can better understand what your options are when it comes to helping make an offer that stands out!