Tips For Making An Offer They Can’t Refuse!

In a competitive housing market, you need to move quickly and present an offer that shows the seller how serious you are in purchasing their home. So, if you’re ready to buy a home you love, how can you put together an offer “they can’t refuse”? Follow these tips below!

Get pre-approved by a lender for a mortgage

Getting pre-approved for a mortgage is the first important step in the home buying process. Most sellers will not even review offers that don’t come with pre-approval letter, especially since other prospective home buyers are likely to have one in hand. A pre-approval means a lender has checked your credit and financials, pre-approving you for a certain sale price of a home. It shows a seller you are serious about buying, and shows them that a lender is ready to extend you a mortgage.

How-to-Negotiate-the-Best-Price-when-Buying-a-HomeDetermine and offer a fair price for the home

You don’t have to offer the asking price of a home when you submit your offer. The price can actually be any price you want, but you should work with your real estate agent to determine a fair price for the home you’re interested in. If you are offering less than asking, you will likely need to explain why: is the home is priced high compared to comparable recent sales in that area? Will the home need substantial work that should have been taken into consideration when the seller priced their home? Is it smaller than most other homes in the area? Using a service like Zillow’s Zestimate is NOT a good basis for your offer price. Your agent should be able to provide you with sales data on comparable homes in the area (comps) to the home you’re looking at, so you have a better idea of what other people have recently paid for similar homes.

Determine what contingencies you will need to include in your offer

Do you need to sell your current home before you can purchase a new one, or will your mortgage lender let you “float” two loans at once? Do you need to be able to close the sale within a specific timeframe? Are you willing to waive certain inspections of the house in order to close on the sale faster (although this is not usually recommended)? If you have any rules surrounding when or why you will move forward with the sale, they should be clearly listed in your offer. Nobody likes surprises.

Have funds for a good-faith deposit availableEscrow deposit to make an offer on a San Diego Home

When you submit you’ll offer, you will show what you are putting down for your good-faith deposit. This is another way in which you show the seller you are serious about buying, by literally putting your money where your mouth is. It will be deposited into escrow upon acceptance and is normally 1-3% of the asking price of the home. You can always increase the amount of your deposit; however, take precautions to be sure you are able to get your deposit back should the deal fall through for any reason.

Make sure you have any required down payment and fees for closing costs readily available 

If your offer is accepted by the seller, you’ll want to make sure you have everything ready to move quickly, so you can get into the home of your dreams as soon as possible. Since you are likely offering a down payment, make sure the money is liquid and able to be withdrawn quickly. Also make sure you have set aside money for closing costs (if those will not be paid by the seller), so things won’t be held up at the last minute.

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4 Responses to “Tips For Making An Offer They Can’t Refuse!”

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