Getting Your Offer Accepted
Often times, buyers are leery on purchasing a new home because they are not sure how to place an offer, or if they are offering too high or too low. As a consumer, especially when considering a mortgage it is important to remain within your means, but still potentially purchase the house of your dreams. This article will give potential buyers various ways to place an offer on a home without possibly overpaying.
1. Decide What Your Highest Point Is
When considering purchasing a new home, always assume that you are not the only potential buyer. If you consider going into a new contract thinking that you have a sure shot at getting the home, you might be setting yourself up for failure. If you assume there are other potential buyers, you avoid getting comfortable and feeling you have all your eggs in one basket, so to speak. If you assume there are other potential buyers looking at the house, consider what you are willing to offer. Chances are, other potential buyers are thinking the same thing. In that instance, offer a little more, even if only one to two hundred more. At this point, you are getting an upper-hand against other potential buyers.
2. Remain Respectful to the Sellers and Their Home
This may be the location where a family was raised, a wedding occurred, or a first time buy for another family. If you offer too low, a seller may become offended that you think their property is worth less than they put the house on the market for. If the seller feels offended, they are less likely to choose you as the new resident for their beloved home. You never know the circumstances of someone’s move. It may be out of their control; they may wish to stay in the home longer, but other endeavors require them to move out. Do not make them feel like their house is not worth the asking price.
3. Have Your Finances in Order
If a buyer comes in with a pre-approval letter from a lender, that shows the seller they are serious about the purchase of the home. The pre-approval letter indicates that the family or individual have the appropriate credit, income, and assets to purchase a home. That also decreases much of the financing issues that may occur as the home-buying process begins. If at all possible, obtain a pre-approval letter from the lender. It will give the seller a piece-of-mind that you are serious about purchasing the home and not just looking.
4. Raise the Stakes
If in a situation that financially allows you to, offer a larger earnest money deposit. It is true that earnest money will be returned to you after closing. However, it shows that your interest in the home is serious. Also, if possible, offer a substantial amount for the down payment. This aspect will show the buyer that you are serious about the procurement of their home and it will benefit you in the long run. Putting down a larger down payment will decrease the principal amount, reducing how much the buyer will be required to finance.
5. Offer a Fast Closing
This may be tricky, especially when considering financing, inspection, and all other aspects of purchasing a home. Although it will be difficult, it is not impossible. Find out from your real estate agent when the current owners need to sell the house by and try to beat that deadline by a week, two weeks, or even a month, if possible. This will require a lot of work on the buyers end, but it is possible. Keep in close contact with your realtor, as well as the lender you hope to use. Tell the buyer that you expect that you will be able to close sooner than they would like. This will be beneficial to the seller, especially if it is a short sale and they have to move quickly.