Making Your Home Offer Stand Out In a Seller’s Market
Getting your offer to stand out in a competitive housing market can be challenging. This means you need to be prepared to move quickly, have the proper documents readily available and even have some tricks up your sleeve. So, if you’re in the market to make an offer this selling season, read on for insight on making your offer stand out in a competitive market.
Present Your Best Offer First
In a seller’s market, the seller will favor the highest offer. When looking for a home, separating your emotions from the process is essential. This means staying within your budget range and being ready to walk away if the house isn’t in that range. Present your highest offer first. In a competitive market, you likely won’t have the luxury of back and forth negotiations.
Get Pre-Approved for a Mortgage
Being pre-approved shows the seller you have a serious offer and can afford the property. Having a pre-approval letter before submitting your bid is valuable when time is of the essence and you need to make your offer quickly. In the time you spend obtaining your pre-approval letter, the seller may receive several other offers.
Remove Contingencies
The fewer contingencies your offer has, the more likely the seller will accept your offer. While some contingencies may be inevitable, the most successful offers in a competitive market include as few contingencies as possible. Forgoing an appraisal contingency is one you can eliminate. This contingency allows you to take back your offer if your lender appraises the property less than your offer. You can also forgo physical contingencies; however, it’s crucial that you only eliminate cosmetic contingencies, not any structural contingencies.
Put Down as Much as Possible
Cash is king, and this is especially true in real estate transactions. Cash transactions are usually easier and have lower closing costs. If making a cash offer is available to you, this is an excellent way to help your bid stand above other buyers who require financing.
Offer to Close Quickly
Being pre-approved and having a contingency-free offer can result in a faster closing time. For example, while it still may take up to 30 days to close, if a seller receives a 45-day closing offer and a 30-day closing offer at the same asking price, they will likely select the offer with a faster closing.
Speed Up the Inspection Process
While standard inspection processes vary, a faster inspection process can make your offer stronger. An inspector who can inspect the home immediately after the offer is accepted can be more favorable to the seller. This is because sellers don’t want to wait for an extended period to determine if you will accept the property.
