How to Make a Competitive Offer
In today’s competitive market, homes can come and go in a matter of days. As a buyer, you need to make an offer that will convince the sellers to sell you your dream home. Here are some tips from Mark Spain Real Estate on how to make a strong, competitive offer that stands out from the rest.
If You Can, Pay In Cash
If you’re able to make an all-cash offer, do it. Making a cash offer gives you a competitive edge over other bidders. Sellers love cash offers because there are fewer hoops to jump through before the closing table. Home buyers who pay in cash can move through the closing process much more swiftly than those with who are financing, which offers sellers an appealing sense of security. Some sellers may even choose a cash offer over a higher offer that is being financed! Just make sure that you send a proof of funds when you submit- this makes your offer even stronger!
Personalize Your Competitive Offer
If a seller has multiple offers in front of them, make sure yours stands out from the pile. Many bidders write “love letters” to sellers that help make their offer more personal. You could send a handwritten note that tells the sellers all you love about the home and personal details – like how you can’t wait to make the guest bedroom your child’s new play space!
If you want to get really personal, include a photo of your family; this will help the sellers put faces to your offer, too! Many sellers want to know who they’re turning their home over to, so including personal details with your offer may make it easier for them to accept your bid over the rest.
Be Transparent About Your Finances
There are many things you can do to make a financing offer competitive with cash offers. Include a pre-approval letter from your lender to provide sellers with the confidence they need to accept your offer. Additionally, consider allowing your agent to provide financial information about you to the sellers. If the sellers know information like your annual salary, where your credit stands, and how much you have in the bank, you can prove you are as financially solid as a cash buyer.
Shorten Loan and Appraisal Contingencies
Ask your lender how quickly they can appraise the property and how long the loan will take to turn around. Then, work to make sure those processes move as swiftly as possible! Sometimes lenders can line up the appraisal in advance, so you can tell the seller the appraisal has been ordered when you send in your offer.
It’s a huge competitive advantage if you can get the appraisal completed within a few days. Depending on where you live and which lender you use, loans may be approved in less than two weeks. Push the process along so you can be sure to make the sellers happy!
Inspect and Close Quickly
While you push along your appraisals and loan contingency process, get your inspector in and out. Consider paying a little extra to get the inspections done within a few days to show the seller you’re a serious buyer.
Additionally, let the seller know you can close sooner than other buyers. This will demonstrate that you mean business! Delays can frustrate sellers, so being able to bypass those big-time hurdles will make your offer even more appealing when making a competitive offer.
Ask For Few (Or No) Repairs
An offer that asks for little to no repairs will seem more appealing than a higher offer that requires a seller to do dozens of repairs on their home before closing. This is a competitive offer on your end.
No seller wants to spend the stressful weeks before the closing table repairing door handles or light fixtures. If you can, take all the cosmetic repairs off your “to-fix” list before placing your offer. The seller will see your bid as stronger if they don’t have to shell so much out in repairs!
Remember these tips when you’re browsing the market so you and your agent can write the strongest competitive offer and snag the home of your dreams! Have you started your search yet? We can help! Click here to begin your house hunting search.
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