If you are trying to buy property in a hot real estate market, you need to make exceptional offers. Zillow describes a hot market as a seller’s market, which means there are more buyers than sellers–a situation that is being experienced in most cities across the nation in 2021. In this situation, buyers need to write strong offers because many of the best real estate agents in your city will be making offers on that same piece of property. Here are the top six strategies to make your offer stand out.
If you have the cash, use it. Cash offers are widely seen as far superior to offers that are contingent upon financing. When getting a loan, you need to have the property appraised, and the appraiser can note conditions of the property or value it for less than your offer. When you make a cash offer, you do not need an appraisal, and if you are not getting one, let the seller clearly know that in your proposal.
When making a financed offer, attach a pre-approval letter. Make sure it is a pre-approval and not a pre-qualification letter. A “pre-qual” means you have told or shown the lender your financial documents, but a pre-approval means the mortgage lender verified your information. In essence, you are showing the seller you have the credit and income to purchase their home, and you can prove it with your lender’s pre-approval letter.
Large Down Payment
There may be multiple offers that are virtually the same, and the only difference is, one party put down more money. A sizeable down payment can be a sign to the seller that you want the home, and you are willing to back it up with cash. Your deposit does not have to be at risk if the contract has contingencies. A top-selling Realtor® can help you construct an offer that will protect your down payment.
Contingencies are conditions that must be met in order for the deal to close. For example, the house must appraise at the purchase price. Eliminate as many contingencies as possible right from the start, and shorten up the time frame on the ones you must leave in. If the traditional inspection period is two weeks, find out how quickly you can get them done and adjust accordingly.
Help the Seller Out
Add things to the offer that help the seller. Usually, on the day the escrow closes, the seller must be out of the house, which can be difficult to do if they are waiting for the funds from this sale to move. Offer to allow the seller to stay on the property past the close of escrow for a short period.
Offer More Than The Asking Price
Depending on the seller’s circumstances, money may be the ultimate decision about which deal they will sign. If you are paying cash and think the space is worth more, offer the most you will pay for it. Put your best offer forward first. If you are depending on a loan, the property will have to appraise. Have your agent run the comparables for that neighborhood, and with that information, write the highest price you think the property will appraise out at.
EffectiveAgents.com can help you find the perfect Realtor® for your needs. Our agents have strong contract and negotiation skills. When you are ready to learn about or start the home buying process contact Effective Agents today.
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