Tips for Being More Competitive When Putting in a Home Offer
home offer
Every once in a while, you might find the dream home you’re looking for sitting on the market. It might be tempting to make a home offer immediately, but there are a few factors to consider first.
Although you cannot predict what other potential buyers might do, there are ways to hedge your bets and make the most compelling home offer that you possibly can.
Add Escalation
If you’re serious about the home you want, there is an easy way to let the seller know.
During the initial offer you provide, you can tack on an addendum that the industry calls an escalation.
In this case, the stipulation will read that if a competitor goes beyond your base offer, you are already willing to raise it by a particular amount.
This might make your offer more compelling, and it certainly keeps you from overpaying beyond your comfort level.
Go Beyond the List Price
This one is a great strategy, but you should check out your finances to make sure you can afford it first.
No matter where the home is located, offering a price above what is on the list can be a strong motivator for the seller to go with your offer.
It is a good idea to consult with a qualified real estate agent to see what your options are and if they recommend such a move.
Be Earnest
Earnest money is sometimes another name used for the deposit you put down in good faith.
It is only a small percentage of the sale price of the home. These funds are meant to help the seller with closing costs.
If you increase the amount of earnest money you’re willing to put down right from the start, you could appear in better standing than any of your competition.
Waive Contingencies
This move can be a bit risky, but it can also pay off in a big way. In most situations, a seller must meet certain requirements before the deal closes.
Most of these requirements are to the benefit of a buyer. However, if you are not against a potential increase in risk, or if you want to look like the strongest candidate out there, you can opt to waive these things in your offer.
This move makes things easier and safer for the seller.
Following some of these tips could improve your chances of being the winning bidder on the house you’ve always wanted.
You may need to tweak some of these suggestions to suit a particular situation, but many of them will work well for most buyers.
A competitive housing market isn’t the only reason to do whatever you can to make a great offer.
Some sellers might be naturally cautious, and an enticing offer can help put them at ease and move you to the top.
In some cases, pre-approval for a home loan can help assuage any nervousness a seller might have.
Category: Housing
