In today’s competitive market, what do sellers find important in an offer?
This is the craziest seller’s market I’ve seen in my 26 years of doing business. If you’re planning to buy a home, you need to know how to make your offer appeal to the seller so that you have a better chance of getting yours accepted. There are a few basic and more innovative strategies you can try in order to catch a seller’s eye:
1. Offer a price above the listing price. Sellers want to see a strong, nonrefundable due-diligence deposit, which shows that you’re serious about buying the home since you have more skin in the game.
2. Have the money to pay the difference between the sale price and the appraised value. In a seller’s market, it’s unlikely that the seller would be willing to reduce their asking price to the appraised value of the home if the appraisal comes in low; most homes are selling for more than their appraised values.
3. Have a strong proof-of-funds letter if you’re using cash. If you’re getting financing from a lender, then get a strong pre-approval letter that says your lender has pulled and reviewed your credit.
“Higher deposits show that you’re a serious buyer since you have skin in the game.”
4. Have your lender call and assure the seller you’re a strong buyer.
5. Offer a rent-back to the seller. With the shortage of inventory, sellers are also having a tough time finding other homes to buy. By allowing them to stay in the house after you close, you’d give them extra time to find and close on a house of their own.
6. Offer to pay for the seller’s moving or closing costs.
If you like to learn more about how to make your offer stand out in today’s hot market or if you have any questions about real estate, don’t hesitate to reach out. We’d love to help you accomplish your real estate goals.
