Okay, so you’ve found your dream house and now you’re ready to make an offer, but how do you make sure your offer stands out among all the others? You want to make your offer the most appealing so sellers go your way. So whether you’re dealing with a competitive housing market or a cautious seller, getting your offer accepted requires creativity, compromise, and a strong strategy.
We’ve put together a strategic plan to help you seal the deal and make your dream home a reality.
Choose the Right Agent
Listing agents often look to see who is representing you. Not all agents are created equal, and the sellers and their agent will often want to work with agents with whom they’ve worked before. Having an agent with an established and credible reputation will boost your chances of getting your offer accepted.
Get Pre-Approved for a Home Loan with a Local Lender
Getting pre-approved will show the home seller you can actually afford to buy the home. Sellers feel more secure with local lenders who are familiar with the area and have in-house underwriting. Having the ability to contact your lender at each step of the process assures all parties that you are likely to close smoothly and on time.
It’s not all about the offer price!
In terms of numbers, the seller cares about their bottom line. What do they make after paying off their mortgage, all fees, and concessions to you, their buyer. You’ll want to work with your Verity Group agent to make sure that you are being strategic about the offer price, concessions asked for, repair expectations, etc. Each property and scenario is different, and often we’re here to help you understand your best chance of success at getting your offer accepted.
Add an Escalation Addendum
When making an offer on a house, you can stipulate that if anyone beats your offer you’ll raise your offer by a certain amount, with a cap as high as you’re willing to go. This also helps you avoid overpaying, but still keeps you in the game in case there are other offers coming in. It’s a more cautious approach to being competitive in what feels like a silent auction situation.
Increase Earnest Money
Your earnest money deposit in Hampton Roads is typically $500.00-$1,000.00 and goes towards any expenses you would incur at closing. By increasing the amount of earnest money you put down, you can show your financial ability thus allowing the seller to know you are more than qualified to purchase their home.
Write a Personal Letter to the Seller
Sometimes a personal offer letter can win a seller over when making an offer on a house, especially if you’re buying from an owner occupant. Tell them what you love about the home and try to make a personal connection. Compliment them on a recent renovation, a color palette choice, or the landscaping. It won’t always matter, but sometimes a personal touch such as a letter can mean more than having the highest bid.
Be Flexible with the Closing Date
If your lender allows and you’ve been through underwriting, you can promise to close quicker (15–21 days). Generally, the faster the closing process, the stronger your offer. However, the seller may be looking for a longer closing process. In that case, letting the home seller know that you’re flexible with the closing date could allow them the much needed time to move their belongings into their next house.
All of these are different ways to ensure you can make the best offer for your future home. Verity Group is here to help you with your strategy. Contact us today and let’s set up a plan!