We are currently in a seller’s market where buyer’s are fighting over a low inventory of homes. Here are some things that you can do to make your offer stand out amongst the competition.
- Get pre-approved by a lender. A pre-approval tells the seller you have spoken to a loan officer, filled out an application, your financials have been reviewed and you are ready to take the next step in purchasing a home.
- Write a Friendly Offer. Besides price, what is important to the seller? Write your offer around that information. Be careful what you ask for in the offer. Ask yourself how it will compare to other offers.
- Put your best foot forward. Remember, the seller will most likely be looking at a number of offers. How do want to rank with the others?
- Put down a larger Earnest Money deposit. Typically, a seller is offered 1% of the sales price as earnest money. A larger earnest money tells the seller you are serious about completing the transaction.
- Offer cash if you can. A cash offer is the best kind of offer because it a faster sale by not having to wait for loan approval from a lender.
- Shorten inspection times. Typically, a buyer has a 10 business day inspection contingency to get a property inspection and negotiate any repairs. Once, the inspection period is complete, the buyer is usually out of options to terminate the transaction.
- Write a letter to the seller. I always recommend to my buyers to write a letter to the seller explaining what it is about this house that makes it a good fit for them.
- Offer to close quickly. Speak to your lender and ask them how long they will need to close this transaction. If you can make it 30 days or fewer, you may have an advantage.