Since the beginning of the pandemic, existing-home inventories have been at all-time lows.
When there is a strong demand for houses, it is important that your offer stand out from the rest.
A well-crafted offer is critical to securing your dream home, but a bad offer can result in another buyer getting the home you want.
Here are five easy ways you can do to secure the home you want
Appeal to the Seller’s Emotions
Create a personal letter to go with your offer. Explain why you want to buy their house and to the seller’s feelings. Tell them what you loved about their home.
If you are a first time home buyer, let them know if you think it’s a great place to start a family.
Compliment them if you noticed that the house was well taken care of, and that you are the right person to continue caring for it.
Sellers are always deeply attached to their homes, and a strong personal letter assures them that their house will be in good hands.
Offer to Pay in Cash
The more cash you will bid up front, the more likely the seller will notice & consider you from the multiple offers they have been receiving.
Few homeowners turn down an all-cash sale. Cash deals close rapidly, ensuring the fast deal that many buyers want.
If you do not have the funds to pay cash (but are able to put down a substantial down payment), inform the vendor that you will be putting down 30 percent to 40 percent (or more), as opposed to another offer that is just putting down 5 percent.
This will entice them to believe that getting a mortgage would be less of a headache for you.
The benefit to you is that you can save money on your mortgage in the long term by reducing the duration of your debt and the interest you pay.
Offer a Fair Price
Home sellers anticipate that their homes would sell for a reasonable price and often base their selling price on a sentimental commitment to the property.
Emotionally attached home sellers usually refuse low offers, they misinterpret the offer as a personal insult for the home they’ve invested so much memories on.
Making a low-ball offer could give the seller the idea that you aren’t sincere about buying their home. Worst case scenario, they could tell you not to make another offer…even though it is higher.
Give the appropriate amount of Earnest Money
Earnest money ranges from $1,000 to 3% of the purchase price. Making up your own amount of earnest money to put down could give the seller the idea that you are a tough buyer.
Presenting the bid with a large earnest money deposit will indicate to the seller that you are a serious buyer.
Hire a professional Real Estate Agent
Seek help from an experienced real estate agent that is familiar with the housing market. An experienced agent will work right away in making the offer to the seller.
They know how to make your offer stand out among the rest, and will give you options that could sound crazy in a slow market.
But may mean the difference between an approved and refused offer in a tight market.
Getting the right real estate agent on your side will make or break the deal.
In a low inventory market, it is important to research the trends & to consult with your real estate agent. They will guide you in making the best choices & increase your chances of getting that house you want.