You have finally found your dream home and want to ensure that your offer is accepted and the dream of making this home yours comes true. The following will provide a few tips that will make your offer irresistible to sellers:
1.) Work with your real estate agent to understand what similar homes in terms of size and condition recently sold for in the same neighborhood. This will provide you with pricing information on what buyers were actually willing to pay for homes similar to the home that you are interested in making an offer on. Use this information as a basis for formulating your offer.
2.) If you are able to pay cash for the home, this will put you in a stronger position than a buyer who is using financing. Cash offers are less likely to fall apart as the sale is not dependent on receiving loan approval. Also, cash deals tend to close faster due to the time lenders may need to approve the amount of financing that the buyer requires.
3.) If you prefer not to pay cash, you will need a mortgage. If this is the case, be sure that your finances are in order. A few months prior to looking for a new home, check your credit report allowing time to dispute any errors and take the necessary steps such as paying down debts that will improve your credit score. You can get your reports once a year from the three major credit bureaus at www.annualcreditreports.com. Next step is to get a lender’s pre-approval. This won’t guarantee that you’ll get a loan but it will show sellers that a lender has verified your income your income and credit score and has determined that you can afford payments on a mortgage for a designated amount. This will indicate to sellers that you are ready to purchase and have already committed to a lender.
4.) Include a healthy deposit as part of the offer. The deposit will show the seller how serious a buyer you are. You have the option of making an initial deposit either with the offer or three days from the execution of the agreement. Additionally, you have the option to make a second deposit which could further demonstrate your seriousness as a buyer. For any reason allowed by the agreement that your offer does not result in a closed sale, you are entitled to receive 100% of your deposit money back.
5.) Should you opt to have an inspection of the home, do not take the maximum number of days allowable per agreement to have an inspection performed. Instead of upwards of 15 days, opt for 5-7 days. Sellers prefer a shorter time frame as the buyers have the option to walk away from the agreement for any reason during the inspection period. Sellers prefer to work with buyers who can work with shorter inspection periods,
6.) Offer to close in as short a time frame as possible . Many sellers prefer to close within 30 days. If you can offer a shorter time frame that may be very well received by the seller. Cash deals generally allow for a quicker close. With financing, always confer with your lender to determine how many days that they need to approve your mortgage. Be sure that the seller is aware of your willingness to work with their timetable to close. If the sellers want to remain in the house for a short time after closing, offer them a lease back which means that you would be their temporary landlord.
7.) Don’t include demands on your offer that would irritate the seller. If it is customary in your area for the buyer to pay for their own title insurance then don’t ask the seller to assume this cost. Don’t make a lot of unnecessary changes to the agreement which would require approval and initialing by both parties. These agreements have been drafted by real estate attorneys and are designed to protect both buyers and sellers. For any desired changes to the standard agreement, consider using an addendum to the agreement for this purpose.
8.) After conferring with your real estate agent, determine your best offer that you are willing and able to pay. As previously stated, make your offer based on recent closed sales of comparable properties in the neighborhood so there will not an issue if the property is appraised.
9.) Where financing is involved, be sure to secure your real estate agents feedback as to whether you should put forth your best offer. Depending on local market conditions, you may only get one more chance to make an impression on the seller. It may be unwise to make a low offer hoping the seller will give you a counteroffer. If the seller has received multiple offers, the low offers are generally not ever considered. Keep in mind that in addition to the offer price, sellers also look at other costs and expenses, the financial stability of the buyer along with the timeline related to the inspection period and closing date that work best.
Should you have any questions or have an interest in buying or selling residential real estate in South Florida and not currently working with a real estate agent, please call me at (954) 547-9483 or email at firstname.lastname@example.org. Until Next time…..