Here are three ways that you can beef up your offer in this hot market.
In this crazy seller’s market, homes are selling quickly and for above asking price. We’re sharing the three main things you need to do to give yourself the best chance possible. Keep in mind that nothing can be 100% guaranteed, as there will always be someone out there who could offer a higher price, show stronger financing, or pay with cash. That said, taking care of these three items will always make your offer better in the eyes of a seller:
1. Have your finances in order. If you’re in a multiple-offer situation and you don’t have a pre-approval letter from your bank or lender (or proof of funds if yours is an all-cash offer), it will be really hard for you to compete. From the seller’s perspective, a lack of financial verification shows that you’re not ready to make a serious offer on the house. Get everything squared away with a lender before you even start looking at homes (if you need recommendations for a great lender, please reach out and we’ll be happy to help you there).
2. Strengthen the terms of your contract. Within the contract itself, there are several different ways to strengthen your offer, the most obvious one being price. In this market, there’s no sense in holding back with your initial offer. Put your best foot forward; ask yourself at what point you’d be okay with losing out on the house, and identify the highest possible dollar within your comfort zone. You should also try to eliminate or shorten the contingencies of your offer as much as possible, as doing so will almost always grab the seller’s attention.
“Get pre-approved before you even
start looking at homes.”
3. Connect with the seller by writing them a letter. Most of the time, you don’t get to meet the person on the other side of the contract, so we at the Moats Team want to help you create a human connection with this simple but impactful gesture. In your letter, you can describe yourself, your family, the things you love about the seller’s house, and why it’s perfect for your family’s vision. If you’re able to appeal to a seller’s emotional side, they’re more likely to pick your offer, especially if they’ve received a lot of similar offers with fairly negligible differences. If you need any help with your letter, we have a plethora of templates that we would be more than willing to share to help get you started.
If you need help with any or all of these tactics, be sure to give us a call or send an email; The Moats Team is always here to help you achieve your real estate goals, regardless of the market you’re in.