If you’re on the market looking for the perfect home in Rhode Island, you want to do everything possible to ensure that your offer is accepted by the seller. In a competitive marketplace, multiple offers may be placed on the same property. There are six tips and tactics to consider using to enhance the chances that your offer will be accepted by a home seller in Rhode Island.
Having a mortgage loan pre-approval in place before you submit an offer is imperative. Perhaps nothing increases your chances of having your offer accepted by a home seller than mortgage loan pre-approval. When it comes to pre-approval, the optimal type of financing that will prove most attractive to a seller is a conventional mortgage loan. A conventional home mortgage loan has the most moderate requirements regarding such issues as the overall condition of a residence. Thus, a sales contract typically can close more quickly when a conventional mortgage loan is the financing vehicle.
When striving to increase the odds of acceptance of your offer, focus on a local Rhode Island lender that provides clear confirmation of loan preapproval. This type of preapproval confirmation will carry more weight with a seller and seller’s agent than an automated letter from a national mortgage lending operation.
Avoid Seller Paying Closing Costs
With considerable frequency, a buyer attempts to have a seller assume responsibility for closing costs. Sellers understandably consider this a cut into their proceeds from the sale. All things being equal, if a seller has an offer in which he or she assumes closing costs and another which assigns these expenses to the buyer or divides them between the parties, the seller will select the offer which allows him or her the better return.
In addition to paying at least a reasonable share or all of the closing costs to enhance a bid in the eyes of a seller, you can also consider other options to address these expenses. These include:
Free Home Value Report ⬇️
- Seek financial assistance from a family member
- Shop around for the best price on insurance and title company charges
- Seek a lender credit option to lower closing costs
- Ascertain if a zero down loan is available (this is harder to come by in this day and age)
Allow Seller Occupancy After Closing
Another way in which you can sweeten an offer for a seller is to permit the current homeowner the ability to occupy the premises for a period of time after the closing. For example, many a home seller worries about being able to close on a new home he or she is desiring to purchase and get moved out within the time period associated with a moveout around the time of closing. In this day and age, granting a seller 30 days following closing to retain occupancy of a residence is becoming evermore commonplace. Including an expanded period of time from the closing date until a future time to leave the residence can be precisely the added benefit that will make your offer all the more appealing to a seller.
Write a Personal Letter as Part of Your Offer
The reality is that a house is not only a person’s most significant financial investment, it is also the center of an individual’s life. A home has financial worth and personal value as well.
You can make your offer more attractive to a home seller if you take the time to write a personal, heartfelt letter to a seller. By sharing how you are personally attracted to the residence, and why, can leave a seller feeling that by selling to you, the home will be in good, worthy hands. This can make the difference in having your offer accepted when buying a home in Rhode Island.
Eliminate Contract Contingencies
Another key tactic to consider is removing any contingencies from a real estate contract. For example, many contracts contain a contingency that a closing is dependent upon a prospective buyer selling his or her home. By getting rid of contingencies of this nature, you eliminate a risk or risks that a seller may not be eager to assume. Eliminating contract contingencies truly can go far when it comes to making your offer more attractive in a competitive marketplace.
Add an Escalation Clause to an Offer
You can enhance an offer by including an escalation clause with it. An escalation clause automatically ups or increases your offer if someone else has made one above your own. You will want to include a cap on the maximum amount you will automatically increase your offer if you are “outbid.”
By employing the tips and tactics enumerated here, you will place yourself in the best possible position to tender an offer to a Rhode Island home seller that the current owner will be more likely to accept. These strategies better ensure that you will not lose out on the opportunity to purchase a residence that matches and satisfies your needs, goals, and objectives.
Questions about buying a home in Rhode Island?
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6 Tips to Get Your Offer Accepted When Buying a Home in Rhode Island was written with guest writer assistance from Jessica Kane.
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