For those who have not undergone or researched the home buying process before, it may seem cut and dry. You find a house you like, you make an offer, and you get the house – but not quite.
Sure, sellers are thrilled to receive an offer; however, it is currently a seller’s market which means they are receiving multiple competing offers.
With mortgage rates at an all time low, inventory is low as well in the Real Estate market and the demand is high. Here are some ways you can make sure your offer stands above the rest.
Do not get discouraged
If you know that a seller already has multiple offers or if the home sale is pending, it still may not hurt to submit an offer anyway.
You never know, you just may have the winning number! It is no skin off of your back to enter the game. You just have to know how to be a fierce competitor.
Put your money where your mouth is
One of the largest worries that sellers face is that a buyer might back out of the transaction or default on their contract.
In order to appease these worries, it is recommended to submit a large earnest money deposit. This shows how serious you are about the home.
Here are 5 earnest money deposit mistakes that home buyers can make.
Stay ahead of the game
Getting prequalified from a mortgage lender is usually the first step potential homebuyers will make.
A preapproval letter is even more desirable. This letter is different from a prequalification letter because it ensures and confirms everything that you are told you prequalify for.
It is a more in-depth analysis that is backed by a trusted mortgage lender or bank.
Play nice
By offering to shorten or waive some contingencies, this might put you on better terms with the seller. This usually means a quicker home sale and less waiting around.
Additionally, be prepared to offer a bit more in cash if the home does not appraise at the price you are offering.
Another way to get on the seller’s good side is to make sure you know who pays what in closing costs. From here, you can determine which costs you would typically negotiate with the seller, and then decide if you will assume the cost in order to increase the chances of your offer being chosen.
Avoid a bidding war
You would not want to lose out on the home of your dreams due to seeming too greedy. In a seller’s market, there are sure to be several offers in the pot, so it is best to avoid lowballing in a chance to negotiate.
Your buyer’s agent will be able to use a comparative market analysis, in order to accurately assess the amount your offer should be.
