How to Submit an Offer That Will Impress Sellers
Whether you’re buying your first home or your dream home, finding the perfect place is only half the battle. Now, you must submit an offer that will get the seller’s attention.
Even when you think you’re coming in with a strong, impressive offer, another buyer may submit a better offer and rip the dream from you, putting you back at square one.
Although there’s no way to guarantee whether a seller will accept your bid, there are ways to get their attention and get a step closer to beating out the competition.
1. Get pre-approved for a mortgage loan
Before a seller will even entertain your offer, they need assurance that there’s a mortgage to back up the offer. This assurance comes in the form of a mortgage pre-approval letter submitted with your bid.
Sellers are looking for serious buyers, and they don’t want to waste time with a buyer who may or may not be eligible for a loan. So even if you bring the strongest offer to the table, some sellers may be hesitant to accept it if they don’t know where you stand financially.
Before you begin your home search, speak with one of our loan experts at Cherry Creek Mortgage. We can provide education and information on various loan programs, and based on a review of your finances, estimate how much you can spend on a home loan.
2. Be reasonable
Even though some sellers expect buyers to negotiate and offer less than the asking price, they’re not going to give away their home. So, be reasonable and avoid lowball offers.
If your offer offends sellers, they may not even bother to counter, causing you to miss out on the home. It’s important to work with your real estate agent and heed their advice so you can come up with a number that’s fair and reasonable.
Keep in mind that you may need to offer slightly more than the asking price if the property has gained a lot of interest. You should be reasonable in this regard, too. If you offer too much and the home appraisal comes in low, this can impact your loan amount and increase the amount of money you’ll need for closing as you may need to cover the difference between the appraised value and the sales price.
3. Don’t ask for too much
The less you ask for, the better. Remember, some sellers need a good portion of their profit to cover the expenses they’ll incur when buying a new home, such as the down payment, closing costs and home inspection. If you offer less than the asking price and request paid closing costs, appliances and a ton of improvements, they might reject your bid.
Consider how badly you want the house and limit your demands. Not to say you shouldn’t ask the seller to complete repairs, but you shouldn’t expect a picture perfect home either.
When buying in a housing market with low inventory, there could be buyers around every corner waiting to sweep in and steal your dream. Make sure you come up with a home offer that stands out. Your real estate agent can provide guidance on what to ask for, so take their advice.
If you are ready to proceed, give us a call to start the mortgage process. Our loan experts are standing by to help you find the right loan to meet your unique needs.