If you found your dream home, you want to place a competitive offer. You want to place an offer that impresses the sellers and that is sure to be accepted. But how do you accomplish this task? What does a competitive offer include? Here are a few expert tips to help you place an offer on a house that is sure to be accepted.
Get Approved for a Mortgage
Before you begin your house hunt, you should visit a lender to receive mortgage pre-approval. If you qualify for financing, you will receive a letter outlining how much the lender is willing to let you borrow, your estimated interest rate, and your expected monthly payment. By including this letter with your offer, you show the seller that you can likely qualify for the necessary financing and that you are a more serious buyer.
Limit Your Contingencies
Most offers will include certain conditions that must be met for the buyer to purchase the home. A few common contingencies include:
- You acquire all the necessary financing.
- You sell your current property.
- No major repairs or issues are discovered during the home inspection.
- The seller completes certain repairs on the home.
To help you make an offer that stands out, limit the number of contingencies you place in your offer. Talk with your real estate agent to determine which conditions should be included and which ones you may want to leave out.
Do Your Research
House hunting is more than just looking at various properties, it also involves conducting plenty of research. If you’ve found a home you love and want to place an offer on, it is time to get to work. You want to research and learn all you can about the property, the location, and the seller. Spend time learning about the market and making sure your budget works with your plans.
The more information you have about the situation, the better offer you can place.
Increase Your Deposit
When you place an offer, you will also be required to place a deposit. This money will be included with your down payment, however, it is different than your actual down payment. Your deposit is used to show that you are serious about purchasing the property. While there is no set dollar amount you must provide, you will want to provide at least 5% of the home’s purchase price as your deposit. The more money you provide, the more you have to lose, proving to the sellers that you are serious about
purchasing the property.
Be Smart About the Negotiation Process
While you want a great deal on your dream house, the seller wants an excellent deal on his or her property as well. This makes the negotiation process a challenge and it is easy to let your emotions get the best of you. When you let your emotions run the negotiation process, however, you will make poor business decisions.
When negotiating your offer with the seller, work closely with your real estate agent. He or she does not have the emotional ties that you may have and can help you more clearly see different options. Be smart throughout this entire process and understand that a little back and forth is normal and nothing to be too concerned about during this process.
When placing an offer on a home, you must think about more than just the dollar amount you plan to provide. There are many factors that go into this decision and when you are smart with this process and use the above tips, you greatly increase the chance that your offer is accepted.
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