You did it...you found your dream home and now you’re ready to make an offer to seal the deal. But how can you ensure that your offer stands out amongst the rest? How do you make your offer more appealing to the selling party?
Whether you’re dealing with a competitive housing market or a cautious seller, getting your offer accepted requires creativity, compromise, and a strong strategy. So how can you convince a seller to side in your favor? Check out these strategies to help you seal the deal and make “home sweet home” a reality.
1. Get pre-approved for a home loan
Getting pre-approved will show the home seller you can actually afford to buy the home. This is an important step for a buyer in any situation, but it’s even more critical if you want to make the strongest case that your offer is solid.
2. 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.
3. Waive contingencies
Contingencies are certain things that must be met in order to close a deal on a property – such as a home inspection. In multiple offer situations, buyers can waive some or all contingencies to reduce the seller’s risk and speed up the home selling process. Generally, the fewer contingencies you have, the stronger, but riskier, your offer.
4. Increase the amount you’re willing to put down
A higher down payment typically means less financing issues with a mortgage lender and also less risk for a seller. So when you are wondering how to make an offer on a home and win, a higher down payment can make the difference. Presenting documents such as pay stubs, tax forms, and your 401(k) balance can also show that not only are you prepared to put more down, but you also have the funds to do it.
5. 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.
Contact us on our website or give us a call at 757.452.8974 and we’ll help you with your offer!