When there’s low inventory and high demand for housing, it’s not uncommon for buyers to find themselves stuck in a bidding war. So how can you differentiate your offer when the housing market is hot? We have a few tips to help you write the best offer possible and secure your dream home.
Hire a real estate agent. With an assertive agent on your side, you’ll be able to put your best foot forward when crafting your offer. Since they likely have experience in multiple offer situations, they’ll be able to advise you on how to present an offer than has the highest chance of securing the home, while prioritizing your needs.
Submit a preapproval letter with your offer. With a preapproval letter from your lender, you’re proven to be able to afford the home for which you’re making an offer. This carries a lot of weight for sellers, who can more easily discern if you’re a serious and qualified buyer who can make the commitment to purchase.
Be friendly and approachable. While knowing what you want is a great thing, don’t be too pushy or demanding in your offer. Being flexible and approachable shows the seller that you’re willing to make the transaction work in the best way possible for both parties.
Figure out your top dollar and put your best foot forward. If you know you’re going into a multiple offer situation, figure out what your absolute top dollar spend can be before submitting your offer. If a seller has received multiple offers, it’s likely they won’t even consider a lowball. You only have one chance for a first impression with a seller—make sure they know what you bring to the table.
If a cash purchase is an option, mention it. Even though an offer will be “all cash” to the seller in the end, a transaction that doesn’t depend on receiving a loan approval is bound to be extremely attractive in a multiple offer situation.
Put down a healthy amount of earnest money. If you want to set yourself apart from other buyers, consider putting down a larger sum of earnest money. By showing you’re willing to put cash on the table, the seller will likely feel you’re more committed to the purchase.
Write the seller a letter. Buying a home is an emotional process for both the buying and selling parties. If you really want to make your offer stand out, try writing a personal letter to the seller explaining why you are enamored with their abode and the reasons you’d be the best choice to purchase their home.
Offer to close quickly. Many sellers prefer a closing equal to or less than 30 days unless there are extenuating circumstances. If you’re willing to expedite the process and close in a shorter time frame, that could give you the competitive edge needed to win.
It’s always a great idea to meet with your real estate agent and craft an offer that fits your needs and also appeals to sellers in a competitive market. If you’re looking for an expert who can help you navigate your next real estate transaction, visit our website and contact one of our agents today.
