What can you do as a homebuyer to make your offer stand out from the rest? First, determine the current market value of the home. Every seller has a different pricing strategy. Some tend to overprice their homes, while others underprice or set it right at market value. Knowing what strategy they’re employing will help understand how much negotiating room you have, and this is particularly important if you’re financing your purchase.
Next, find out the seller’s preferred closing schedule. Do they need a rent-back period? Are they looking for a fast close, as is the case with most vacant homes? Perhaps they still need time to orchestrate their move, so a longer close would be preferable. Once you have the information you need, write an offer that accommodates the seller’s closing schedule.
Also, be sure to write a clean offer. Don’t ask the seller for closing costs; if you’re receiving financing and need help with closing costs, consider asking your lender for a lender credit. This will help cover some of the closing costs, though it may lead to a slightly higher interest rate. That said, a lender credit could be worth it if the impact to your monthly payment isn’t substantial. You shouldn’t ask for a home warranty or brand-new appliances, either. If you notice furniture that isn’t listed as staying with the home, don’t try to ask for it.
“Don’t ask the seller for closing costs.”
Another important tip is to shorten up your contingency dates, which include your due diligence, appraisal, and final loan approval periods. In other words, a seller doesn’t want to wait 30 days for you to complete your appraisal.
If you’re financing your purchase, please turn in all of your financial supporting documents as soon as possible. This may include your paystubs, bank statements, or tax returns. Be sure to then note in your offer that you’ve submitted all of the necessary documents to your lender, to show that you’re a committed and qualified buyer.
Lastly, for some unique and upgraded homes, you may want to consider paying over appraised value. For instance, if you’re willing to pay $5,000 over appraised value if it comes in short, you’d put that in your additional terms. If the seller has two offers that are identical, but yours states “Buyer willing to pay $5,000 above appraised value,” they’re much more likely to pick your offer.
If you have further questions about this or any real estate topic, don’t hesitate to reach out via phone or email. I always look forward to an opportunity to help!
