How to Make Your Home Buying Offer Stand Out
Trying to buy a home in a seller’s market can be frustrating to say the least. The low number of available homes combined with low interest rates means that many, if not most, properties are prone to bidding wars with multiple buyers fighting to have their offer accepted. So how can you make sure your offer gets noticed? We’re here to help with these tips to make your home buying offer stand out from the pack.
Be Strategic With Your Offer
Find out what is important to the seller, and build your offer around that. In this market especially, being a hassle-free buyer will win you favor in the eyes of the seller. For example, if the seller has accepted a job in another state and needs to sell quickly, you can include a quick closing in your offer. Whatever their circumstances may be, try your best to accommodate the seller’s needs in your offer.
Start With Your Best Offer
In this current market, there are no guarantees that you’ll get a chance to counteroffer later down the line. Especially when there are multiple offers on the home, low offers tend to be rejected immediately. It’s best to start off with your best offer right out of the gate so you can make a good impression on the seller. Figure out what you’re willing to pay, and offer that amount right from the start.
Show You're Serious
Show the seller that you’re a serious buyer by being willing to put money down and prove how much you want to buy the home. Putting down earnest money shows that you’re serious. If possible, put down even more than normal. 1% is customary for earnest money, but if you can swing it, consider putting down 2-3%. You can also designate a portion of your earnest money as non-refundable in your offer to show that you’re serious about this property. One more way you can prove your interest is by offering cash. We know that this option is not feasible for most buyers, but if you are able, this will give you an advantage over non-cash offers, as it lets the seller know that your offer is not contingent on receiving loan approval.
Minimize Demands & Contingencies
As a buyer, it is well within your right to add contingencies to your offer, however it’s best to avoid making any demands that are likely to frustrate the seller. Don’t let a few hundred dollars – or even a few thousand – keep you from getting the home you want. Contingencies are things that need to happen in order for you to purchase the property. For example, your purchase may be contingent on being approved for your loan, the property being appraised correctly, the home inspection coming back with no major complications, etc. You can set your offer apart by displaying patience and understanding, and doing what you can to work with the seller. If you feel the need to make your offer stand out even more, you could consider waiving one or more of these contingencies. Bear in mind, however, that this is a risky strategy. Say you waived the appraisal, but the home appraises below the sale price, you would still be on the hook for paying the difference.
Speed Up Timelines
If you as the buyer have a set number of days to complete the home inspection, or if you are proposing your own schedule to the seller, shortening the timeline could improve your odds and make your offer stand out. Discuss this option with your real estate agent and weigh the pros and cons to determine if this is a good idea.
Another way you can speed up the process and make your offer stand out is by offering a quick closing. Closing typically takes 30-45 days, but if you can offer say a 21-day closing instead, it may be more important to the sellers to finalize the process as quickly as possible. This can be more important than price for some sellers! Just be sure to consult with your lender and real estate agent to see if they can accommodate a condensed timeline.
Write the Seller a Personal Letter
This last option gives you the opportunity to tell the seller why you fell in love with the house, and how you’re going to love it just as much as they have. This is your chance to appeal to their emotions, and state the reasons why this house will be so perfect for you or your family. Talk up all of the great reasons why you can see yourself living in this home and loving it for years to come.
If you’re ready to apply for a mortgage loan, let our team help you get the loan you need. Visit our Mortgage Loan Center to learn more about the mortgage process, use our Home Buying Calculators to get a picture of what your home loan will look like, and check out our Buying a Home video series on YouTube for more information about home buying. Apply for a mortgage loan online or set up an appointment to speak with one of our Mortgage Loan Officers.
At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members and community. We honor this commitment by providing educational content to help you make the most of your finances. Read our other blog articles to help you gain the financial knowledge you need to succeed.