Here are four ways to strengthen your offer without spending more.
“But my offer was higher!” This is a common statement nowadays. Sometimes, making an offer on a home isn’t all about price. The proper way to gauge a purchase offer is by evaluating the strength of the offer—not just dollar signs.
In this strong market, we’re seeing multiple offers on many listings. In a bidding war, it’s important to submit the strongest offer you can upfront. Submitting an offer with a fair price should be a given, but what do you do after you’ve decided on the best price? Here are four ways to increase the strength of your offer:
1. Communicate with the other agent. This is a dying art in the real estate world, and it’s a shame because it can truly make a difference. Real estate is about people, and a listing agent getting a one-dimensional email from your agent with a bullet-point list of the offer’s summary is just so stale. Your agent needs to communicate with the other agent and show them how easy they are to work with and how sincere of a buyer you are. This way, your offer starts with a win-win.
We had a sale last year where our buyer had been looking for a home for the better part of a year. Before making an offer on the home we eventually closed on, we picked up the phone, spoke to the listing agent, and described the journey we’d been on with our client. From that point on, the agent didn’t see us as just another offer.
2. Back up the price with proof of funds or a pre-approval letter from a reputable lender, and submit a strong earnest money amount that will make the seller consider your offer. If you’re submitting a cash offer, submit proof of funds. If your offer is financed, include a pre-approval letter. Finish with a strong earnest money deposit to stand out from the competition and show how invested you are in the purchase.
3. Consider waiving the inspection repairs and making your offer as is. You’ll still go through with the inspections to know what you’re buying and ensure the home is everything that the seller disclosed. If it isn’t, you can always get out of the contract within the inspection period. This process can vary between states, so make sure you understand everything before making your offer.
4. Accommodate the seller’s preferred closing date. In most cases, we can help get a home closed in as little as two weeks. Or, if we learn that the seller needs more time, you should adjust your offer accordingly so it has a better chance of getting accepted. In addition to being accommodating, time is money. More time potentially means another tax payment, mortgage payment, or HOA fee. When deciding which offer to accept, the seller will factor in any expenses they’ll incur during the life of the contract.
If you’d like to know more about strengthening your offer or there’s anything else we can help you with, don’t hesitate to call or email us. We’d love to hear from you.