How to Win Your Dream Home: Make Your Offer So Irresistible That The Seller Can’t Dare Turn It Down
In a perfect scenario, you’d be the only candidate in the running for the house you want to buy. Unfortunately, this isn’t always the case. Many times, there is another buyer that wants the house as well. Therefore, when submitting an offer on a home, you’ve got to make it as irresistible as possible so that the seller notices your offer over all the others, so that you can win your dream house! Here are the absolute best ways to make your offer so irresistible, to where the seller can’t turn it down.
Present an all-cash offer to them. The best way to make your offer stand out is to make a cash offer. This will make you irresistible to sellers; they love these, because there is less of a chance for the deal to fall through. With non-cash offers, many factors are involved. When many factors are involved, there are many things that can go wrong. When this happens, sellers lose the deal and have to re-list the house.
Get a pre-approval letter from the bank. Buyers who are unable to pay cash have to get a mortgage. This is standard, as most people cannot afford to buy a house outright with cash. Be sure you check your credit before you begin going house shopping. You should do it months before, so you have an idea of the size mortgage you can get, as well as time to dispute any errors you might find on your credit report. It will also give you time to pay any current outstanding debt.
After, you should go get a pre-approval letter from the bank. This will show to the seller that the bank has verified your information and has determined that you can get a mortgage for “X” amount. This will make the seller take you seriously.
Make your absolute, 100% best offer. Make the absolute best offer that you are able to pay. Be sure to have your realtor evaluate the other homes in the area, and sale prices, among other factors. These numbers are what should give you a clear indication of what to offer. The problem with playing a lowball negotiation game with the seller is that there could be another buy simultaneously making their reasonable offer, instead of playing games. Be careful before you play Russian roulette with offers!
Increase your earnest money deposit. The more money you put down, the more serious you appear. However, be cautious in this area, because there are ways sellers can get around returning the money. Only give a reasonable deposit, and that which you can afford.
Lower your contingencies, or, conditions. Most sellers prefer offers without any contingencies. If you have enough cash, put together an “appraisal contingency,” by assuring sellers that if the appraisal comes in lower than the purchase price, you’ll pay the difference or split it with them. Include a home-inspection contingency, but tell sellers that you will cover the cost of any repairs.
Be flexible regarding your requested move-in date. Express your willingness to work with the sellers’ timetable to go to closing. If they have purchased a new home, but cannot move out of their current home for another month, tell them you’ll let them stay. This would mean that you are offering them a “lease back,” which names you their temporary landlord. Try to bend with them a little to make both of your timeframes work. For further reading, we suggest: Advantages to Buying a Home With Cash.