In today’s market, it’s not uncommon to be in competition with several other buyers for your dream home. When you find that perfect house, the last thing you want to do is lose it because your offer didn’t stand out to the seller! While each seller and agent may have different opinions on what makes the best offer, here are some that we’ve found are the most consistent:
1. Include A Pre-Approval
This one isn’t so much a suggestion as it is a requirement – if you’re getting financing for your new place, get pre-approved before you ever sign an offer. Not only does it show that you didn’t just waltz up, see the for sale sign and throw something out there, but it also alleviates some of the seller’s worries that you’ll back out when the bank finds out your credit isn’t actually as good as you thought it was. Be sure to include your pre-approval letter from the bank with the signed offer.
2. Make A Decent Earnest Money Deposit
When you’re sure you can’t picture yourself without this house, be ready to boost your earnest money deposit. Earnest money shows the seller that you’re putting your money where your mouth is, and you’re prepared to give up that chunk of cash if you back out of the contract for any reason other than those allowed under the terms. There is usually a typical amount offered depending on the neighborhood, so if you really want to look good, go above and beyond that amount.
3. Remove All The Contingencies You Can
Having two mortgages while trying to sell the home you’re in now isn’t really a dream that anyone has, but if you have the cash to do it, it’s definitely going to make your offer more desirable. Anytime you can waive contingencies in the contract, like the sale of your current home, it gives the seller more confidence that the deal will go through without a hitch. Another option would be to shorten the typical time periods. If it’s customary for your inspection period to be 10 days, shorten it to 7 to let the seller know you’re looking to make this happen quickly.
4. Make It Your Best!
When you’re up against multiple offers, don’t waste a lot of time expecting to negotiate. Base your offer on solid research of surrounding comparables and really offer what you’d be willing to pay. If you don’t, your offer may be tossed aside in favor of others. Consider paying out of pocket for some of those extras, like a home warranty or closing costs, instead of asking the seller to contribute.
