When you’re in the midst of a seller’s market there really is very little you can do but just watch the market, find the right home and jump on it! Because if you don’t, there’s a good chance someone else will beat you to it. But if you are making an offer, here are six buyer strategies to make it an offer the sellers can’t refuse.
Do More Than Just Prove You Can Afford It
Sellers know what to look for and there is no shortage of choices for them when it comes to offers on the table these days. In fact, multiple bids are so much the norm that unless you really stand out, chances are you won’t even make the top 3 list. Everyone knows the first thing sellers consider is price offered. The second thing, though, is often overlooked even by experienced agents; the lender of choice. A good lender will go further than just pre-approve you, they’ll pre-qualify you by taking extra steps to make sure you can afford the loan. With that pre-qual letter right on top of your offer, you can’t go wrong!
Show Your Interest
One part of writing an offer is providing an Earnest Money Deposit. That is yet another opportunity for a buyer to express strength over other offers. Every marketplace differs with the standard expectation but one thing stays constant: a higher EMD shows higher interest and more financial strength. For funds that will eventually go toward the sale of your home anyway, this is not a bad investment especially during a sellers’ market.
Don’t Play Games
There was a time when buyers could get away with making lowball offers but those days are long gone. Contrary to popular belief, making a reasonable offer will increase your chances for stronger negotiations. In fact, aim for no negotiations altogether by offering a fair price to begin with and you’ll have a much better chance at being the winning bid. You need an experienced Realtor to help you determine the right price and develop a good overall strategy before you dive in.
When buying a home there can be a lot of contingencies in place ranging from waiting for the sale of another home, to inspection results to mortgage contingencies and more. Some are unavoidable but whenever possible, you can reduce the length of time for some of these processes or better yet, eliminate the contingency altogether – the seller will be more inclined to accept your offer.
Keep It Simple
Rather than bog down your offer with hard to read complex language that is hard to read and complicated to understand, make it as simple as possible. Aim for as few issues as possible; ranging from obtaining that pre-qualification from your lender to offering (ahead of time) extra time for closing in case the seller needs it. Your Realtor will be able to guide you on the best practices and options on a case-by-case basis.
Make It Personal
Often, multiple offers received by Sellers are so similar that they can barely discern them from one another. As a Buyer, this is when making your offer personal is particularly beneficial. When the terms, price and contingencies are look alike, standing out with a personal letter explaining what you love about the home can make all the difference. By taking the time to introduce yourself to the Seller in a handwritten note or card, thanking them for the opportunity to view their home and sharing your plans for the home if your offer is accepted, you put a human touch behind what is otherwise a stack of papers. Some Sellers do not allow Buyer letters, so be sure to ask your Realtor if it is ok to write a letter before you start.
Keep in mind, no two situations are the same and no two homes have the same circumstances – so you will benefit from having a strong Realtor® with strategies in place working in your best interests. Get in touch today so we can work on getting you the home of your dreams!