Being preapproved shows the seller that you have your financial ducks in a row. Even better is to have your lender pre-underwrite your file, a more thorough process in which you provide all pertinent documents to your lender. Doing this puts you in the same league as all-cash buyers. This will allow you to offer a shorter time to close because you have already cleared all of the financing hurdles, aside from appraisal, before you write the offer.
2. Don’t lowball
If you haggle for produce at the farmers market, offering asking price (or above) right out of the gate might not be in your DNA. But attempting to negotiate on a house probably won’t help you get to the closing table in a hot market. If the comparables justify the list price, in a competitive market it is usually advised to put your strongest offer out there if it’s a property you really want.
3. Decrease your contingencies
Although you should go in with a strong offer, money isn’t everything, and it doesn’t always buy a seller’s happiness. If money’s been your only focus until now, change your game plan by waiving some contingencies. If you’re pre-approved for a mortgage and have — or can get a hold of — some extra cash, you can waive the financing contingency, an agreement that lets you out of the deal if you can’t get financing. This is a strategy for those who have extra cash or are using banks that do not require repairs. Keep in mind, if the appraisal comes in low, you must come up with the difference in cash.
Another contingency to consider waiving is the home inspection. This is typically not recommended, however, as it removes your ability to ensure that the home is sound. This should only be done by experienced homebuyers who know what they are doing. A safer approach is to shorten the inspection period. Don’t ask for 14 to 30 days. Call inspectors and have them ready to go as soon as you have the contract signed.
4. Add an escalation clause
If you think a seller will get more than one offer, you can help ensure yours will be the one picked by having your offer automatically increase by a predetermined amount. Note that if the escalation clause is triggered, sellers generally have to disclose the competing offer to keep things honest. Let’s say you offer $400,000 for a home with an escalation clause of $5,000 capping at $430,000. If someone else offers $410,000, your offer will automatically escalate to $415,000, beating that other offer. But if another offer comes in higher, such as $450,000, and your cap is $430,000, you would be out.
5. Offer to pay for closing costs or home warranties
Negotiations can include more than just the sale price of the home. There are costs involved with the closing process, and in a hot market, you can use those costs to your advantage by offering to pay them yourself. And here’s another option: Don’t ask for a home warranty. That is, on average, a $500 savings to the seller. And who wouldn’t appreciate that?
6. Write a personal letter to the sellers
This can be more effective than you might think. Even if the sellers have a bidding war on their hands, it can still be difficult for them to part with the home they love, the home where they have made many happy memories. Sellers with an emotional attachment often want to know that the new owners will cherish the home as much as they did. Many times, buyers can appeal to the sellers on a personal basis, acknowledging the care the owners have taken with the home and expressing their desire to continue along that same path. I’ve seen this done via handwritten letters, video testimonials, and face-to-face interactions. Offer Accepted Offer Accepted
7. Get creative
When trying to get your offer accepted, it can pay to be creative. Are you an artist? Maybe paint a picture of the house and give it to the seller with your offer. Out-of-the-box stuff always hits home. But at the end of the day, your offer has to stack up financially too. Offer Accepted Offer Accepted Offer Accepted Offer Accepted Offer Accepted Offer Accepted
8. Be willing to wait
When you get too invested in one particular home, you might overbid. Sometimes it’s best to step back and evaluate the situation. There are thousands of homes; there is not a perfect one. Plus, if you wait for all the excitement to die down, you might just get the house anyway. Many high bidders back out during inspection. The lower bidders may get a second chance at a more appropriate price.
The above article, “How To (Finally) Get Your Offer Accepted”, has beenprovided by Stephen Perrino. Stephen is a professional, full-time Realtor with PAIVA Realty Group and has helped many people buy and sell homes throughout the entire Greater Providence area for many years! If you are in the market toBUY or SELL a home, he would love to connect with you and can be reached via email at [email protected]or by phone at 401-206-8907.
Are you thinking of selling your home? I’m very good at marketing homes to sell quickly, and for more money. If you’re a first-time home buyer then you’ll be in good hands. I’ve helped countless first-time home buyers through the entire process of buying that first home! I have a real passion for helping folks buy
and sell homes here in the great state of RI and I would love to connect with you! Offer Accepted Offer Accepted Offer Accepted