You’ve decided it’s time to make a move and buy a home. It’s exhilarating looking at houses; picturing you and family living, playing, entertaining, and relaxing as you go through each room.
But once you find a house that fits your needs, it’s time to get serious and get that offer in before someone else does. In a tight real estate market, every step counts to get the home you want.
We some key strategies so you can be sure your offer is accepted and can get the home of your dreams.
Find Out the Sellers Motivations
Most people selling their homes are usually motivated by three things:
- Money (which is almost always the bottom line).
- A rush to move for career or educational reasons.
- Emotional reasons like a divorce or death.
We are all motivated by something, of course, and all sellers are at least a little motivated by cash. No one is interested in giving their house away for a loss, so that will often overlap with the other motivations.
Knowing the seller’s motivation is key, so have your agent do some digging. It could be the sellers are hoping for a lot of offers so they can pick the highest bid, or maybe there is a new job in another city and the seller’s need to move fast.
In some cases, there may be a seller who is moving due to a devastating personal reason. This is not a job interview, so get personal and be the buyer that is looking to provide a solution to their problem.
Once you’ve found out what is going to motivate to seller don’t waste time. Start working with your agent on the offer. Usually, the quicker you can submit your offer the better.
Making an Offer They Can’t Refuse
Make your offer as clean as possible
If you are serious about making an offer the sellers can’t refuse, your offer should not be contingent on the sale of any property. The offer should also be free of seller concessions, such as help with closing costs.
Don’t ask for personal property
Head over heels for that sparkly chandelier listed in the exclusions? Do yourself a favor, don’t ask for it. Love the comfy patio furniture and want them to throw it in? You should probably skip it. Another offer might be on the table that is similar in price and not asking for anything. Asking for extras could weaken your offer.
Put down a stronger Earnest Money Deposit
An Earnest Money Deposit (EMD) is a security deposit that the buyer puts down at the beginning of a real estate deal to show good-faith to the seller. EMD is traditionally 1%-3% of the purchase price. Putting down a larger EMD shows the seller that you fully intend to purchase the property.
Waive the appraisal contingency
In neighborhoods going through a resurgence in property values or interest, it could be of benefit to waive the appraisal contingency. If you have plenty of cash to put down, some mortgage programs will allow the appraisal to be waived.
If you know the neighborhood well and your agent does a good job giving you recent comps, it’s not much of a risk. However, beware of skipping the home inspection. Even brand new homes can have issues.
Find Out About Other Offers on the Property
You’ve fallen in love with your dream home only to find out there are multiple offers.
Do not bid too high.
If you truly love it, make your bid the upper limit of your budget (and mortgage approval). It’s easy to get overly emotional and think this is the only house in the world that can make you happy. This simply isn’t true.
Calm down and remember money is not the only thing taken into account by the homeowner. Sellers take into account contingencies, pre-approval letters, appraisal requirements and the closing time-line buyers are asking for.
Some sellers are very emotionally attached to their home. If you’ve fallen hard for the house consider writing the sellers a personal letter. A heartfelt letter just might win the day. Let them know how much you love the home and how you will take care of it.
If you’re looking to update your home rather than move, save big money on a home improvement project check out our blog on DIY Window Replacement: Save Money and Improve Your Home. https://www.enggarciagrant.com/diy-window-replacement-save-money-and-improve-your-home/