When you find the home of your dreams, you’ll probably experience a moment of pure joy. This is where all the hours of house hunting finally pay off. While you’re bound to be excited, it’s not time to celebrate just yet. You still have to make an offer that the seller will accept—and when there are other potential buyers involved, that’s easier said than done.
The good news is, there are a few things you can do to increase your chances of making the winning bid. If you find yourself in a multiple-offer scenario, here are five tips to help ensure that you come out on top…
Presenting sellers with a mortgage pre-approval letter shows them you can go the distance as a buyer. When a lender pre-approves you, it’s because they’ve gone over your finances and determined the amount of financing you’ll likely qualify for. It indicates that you’re financially capable of—and serious about—purchasing a home. Going through the process will set you apart from buyers who don’t bother.
Submit a large deposit
In a competitive buying scenario, you might want to consider offering a large earnest money deposit. One of the biggest fears most sellers have is that a buyer will change their mind at the last minute. When you offer more earnest money, it means you have more to lose if you simply walk away from a deal. It’s cash that you would wind up paying as part of your purchase anyway, but it often puts sellers at ease.
Make your best offer first
When you’re the only one making an offer on a property, it’s reasonable to assume that there’s room to negotiate. That’s less likely to be the case when there are several buyers involved. In these situations, sellers often have more than one impressive offer on the table—and they can choose to accept the highest one without any back and forth. If you don’t bid as high as you can right off the bat, it probably won’t be yours.
Find out what the seller wants
While sellers are motivated by money, there are a few things you can offer to sweeten the pot. The key is finding out what the person you’re hoping to buy from is looking for. Perhaps they want some extra time to pack up—or, on the flip side, a shorter selling timeline so that they can move in a hurry. Maybe the convenience of an all-cash offer would sway them, or the peace of mind that comes with a clean offer that’s free of conditions. Your agent can help you figure out what the seller you’re working with wants most.
Write a compelling letter
Buyers often underestimate the potential power of a letter. The truth is, showing a bit of personality cam make a difference—especially when a seller is trying to decide between two similar offers. If you decide to take this step, make sure that your letter conveys your appreciation of the home you hope to buy. Highlight its best points, talk about what makes it special, and discuss any future plans you have for the living space (unless you hope to renovate, in which case your offer letter isn’t the best place to delve into it).
Preparing to buy a home? We can help you make truly irresistible offer. Get in touch to get the process started!