Four tips for buyers who are wanting to write a competitive offer.
The housing market may have cooled a little, but the inventory is still low, which means there’s a chance you’ll be competing with another buyer. How can you write a competitive purchase offer that’ll get accepted? Here are three strategies to improve your chances of winning the home:
1. Save as much as you can before buying. Preparation is key. If you have to get into a bidding competition, you need to be armed with as much cash as possible, and this money can also help in a low appraisal situation. Setting aside money for the purchase will give the seller the impression that you’re capable of closing the deal and allow you to confidently make your bid price and down payment.
2. Get your mortgage pre-approved. After saving enough money to feel confident with your offer price, you must get pre-approved to verify your budget. A pre-approval is basically a green light and shows that you’re serious. Without it, your chances of winning your dream home are slim to none.
“With these strategies, you can gain an advantage over the competition.”
3. Leave some room for negotiation in your offer. Don’t go all in with your offer price. This leaves no room for future negotiations, and you’ll be forced to back out of the deal if interest rates increase. However, you shouldn’t make a lowball offer either—you only risk offending the seller by doing so. Instead, make a competitive offer. Work with an experienced agent to help you come up with the best offer and counteroffer.
4. Build rapport with the seller. While money is a major deciding factor for sellers, it’s not the only criterion. So if you’re buying a home, it wouldn’t hurt to build rapport with your seller. Talk to them, and tell them why you love the master bedroom or how you’ve always wanted to have a dining area that’s as spacious and well-designed as theirs. Remember to be sincere—too often, the buying process can be very transactional. However, if you can target their emotions and get them to positively remember your name, you can increase your chances of winning.
Getting your offer accepted can be a huge cause of anxiety, especially in a seller’s market. However, with the help of these strategies, you can gain an advantage over your competition. If you need more help winning your dream home, call or email us. We’d be happy to be your real estate consultants.
