You’re finally ready to buy the house of your dreams. It’s perfect for your family’s needs and you’re willing to pay the asking price. It sounds like a sure deal, right?
Not so fast, because in a competitive market; it means that there are more buyers compared to houses for sale. This means that your full price offer might not be enough to sweeten the deal.
Now that you’ve found the perfect house; below are top strategies you need to include in your offer so that it gets accepted in a competitive market:
A pre-approved letter is like a go signal from your lender. It states how much money you have been approved to borrow. This is not an approval for the mortgage but it still carries weight in real estate dealings because it shows realtors and sellers that you are serious about pursuing a property.
A pre-approval letter means that the lender has reviewed your credit history and has decided that you are a suitable candidate for a mortgage. The pre-approval letter is usually valid for a couple of months only. Including a copy of your pre-approved letter in your offer can help sellers sway to your side because it shows that you have funds to cover the sale.
In real estate deals, the buyer usually pays for their own closing cost. Showing proof that you can close the deal without specific financial contingency can help strengthen your case. It shows again that you have the financial capabilities to see the deal through.
Another way to show your financial strength is to put down a large down payment or earnest money deposit on the property. Ernest Money is basically a deposit to the seller showing your good faith in the transaction. Typically, EMD is held in an escrow account. You can get the money back if the transaction does not goes through but it depends on the wording of your contract. For example, you can get the money back if it’s contingent on the home inspection, if the buyer backs out or if the home appraisal comes back low and you need to renegotiate the deal. However, if the deal closes your earnest money can be put towards your down payment and closing costs.
A shorter inspection time frame and closing time means that you really want to own the property. This can be very tempting for sellers because it means that they will have their money sooner than later. A shorter inspection also means less hassle on their part.
No house is perfect. Homes will always have flaws which are usually revealed during an inspection. If it’s nothing major and you can afford to let it go, it’s better to just leave it. For instance, a broken window pane or a creaky step can be repaired once you move in. Yes, it’s a hassle but it’s a minor one and not worth nit picking over. So long as it’s not a flooded basement, leaky roof, termite infestation and other major damage, its best to go ahead and say you’re ready close the deal.
It’s not unusual for a house to get multiple offers in a competitive market. These homes usually sell for more than their asking price. Remember that price isn’t always everything. Adopting these strategies in your offer could help you write a winning purchase letter so you can beat the competition.
Planning to buy or sell a house? Call Gold Path Real Estate at 612-758-0071 today to discuss options for your specific real estate situation.