Tips for Standing out from the Competition – How to have the most attractive offer on the table.
1. Move Fast
Sometimes timing is everything, and it’s everything when you are putting an offer in on a house. Do your research to hone in on what you are looking for, and check out your target neighborhoods at least five to six months in advance. Hire a realtor to give you comparable pricing within the area so when it comes time to make an offer, you are confident your bid is attractive and will be taken seriously.
2. Get your Finances In Order
The importance of getting pre-approved in a competitive buyers market cannot be stressed enough. Sellers are interested in more than the offer amount; they are also looking for an easy path to settlement. In a multi-offer situation, a seller may disqualify a potential buyer because they have not been preapproved. Be ready to have all of the funds you will be using documented.
3. View the Property Now
As soon as the property hits the market, drop everything and go view that home. When shopping for a new home, plan your days as though you’re always on-call. It is necessary to visit the home within 24 to 48 hours after it lists. There may not be another chance. If an attractive offer is submitted to the seller, they may cancel any future showings. If you are interested in buying, make an offer as soon as possible. Same day offers are entirely appropriate.
4. Make the Seller’s Life Easy
You do not need an all cash offer, or the highest bidding price to win over a seller. Just be an easy customer. Show the seller you’re serious by scheduling a home inspection immediately after agreeing on a price – no later than a week should go by before a home inspection is scheduled. Offer to rent the home back to the seller for a short period of time once you own it. Many sellers are relying on the proceeds of the sale before buying a new home. Giving them the option to rent not only takes stress off of the seller, but could also give you the edge you need to stand out.
5. Play to the Pathos
Write a letter to the seller. It may sound old fashioned and even corny, but sometimes pulling on a seller’s heartstrings is the ticket to your new home. A letter can give the seller a personal connection to you, so you’re not just a financial profile or documents that need to be signed. Include a group picture and describe to the seller how meaningful owning the home will be, and how you envision you/your family living, growing, and creating memories in the home.
6. Make Your Offer Appealing
With a competitive market, your initial offer needs to impress. Come in with your highest and best offer. It is not the time to negotiate a deal. Cash is most appealing to a seller, but if you aren’t able to produce an all cash offer, a conventional loan with 20% or more down is the way to go. Conventional loans have strict requirements and are the most appealing type of loan to a seller. Do not ask for concessions from the seller, because chances are they will find another offer that does not require them to pay any fees.
7. Hire a Buying Agent
Hiring a realtor is essential. Find an expert who can give you sound advice on listing prices, comparable properties, and what constitutes as a strong offer. They will cover the logistics to ensure no hasty decisions are made that could cause future complications. Make sure your agent is someone you can trust, and has your best interest in mind.
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