The housing market is insane right now in many parts of the country. Inventory is very low in the most desirable areas, so as soon as a seller puts a house on the market, he or she is bombarded with offers, many of them over the asking price. When you can expect to compete with dozens of others for any given house, how do you make sure your offer is the one that’s accepted?
Why there’s no way to guarantee that your offer to buy a house will be accepted, you can sweeten the deal considerably and make your offer stand out from the pack. The best way to make your offer successful is to be understanding of the seller’s needs and show that you’re financially strong enough to assuage any fears that the deal might fall through. Follow these tips to get into your dream home.
Contingencies allow you, the buyer, to back out of a home sale without losing your earnest money if something goes wrong. For example, it’s normal for an offer to include an inspection contingency, stating that you can back out of the deal or ask the seller to make repairs if a home inspection turns up problems with the house. Financing contingencies, which allow you to back out of the deal if your financing falls through, are also common.
You can make your offer more attractive by waiving contingencies. Of course, this is risky – it means that if the home inspection finds a bad termite infestation, a leaky roof, or some other major defect with the home, you won’t be able to back out without losing your earnest money. It means you’ll lose your earnest money if, for example, your financing falls through. But waiving contingencies can make your offer more attractive than others, and that can increase your chances of getting your offer accepted.
Get Loan Pre-Approval or, Better Yet, Pre-Underwriting
Ideally, you should go to your preferred lender and get a loan pre-approval before you even begin house shopping. It shows realtors that you’re serious about buying a house and gives sellers some assurance that your financing won’t fall through and sour the deal. If you really want to make your offer stand out, ask your lender to do pre-underwriting. Pre-underwriting guarantees that you’re approved for a specific loan amount, so sellers can rest assured the offer won’t fall through – and you can skip the financing contingency.
Work With An Experienced Realtor
Sure, you can buy a house without a realtor, but if you’re looking for homes for sale in Myers Park Charlotte, NC, or another hot market, it’s best to work with a realtor. An experienced realtor will be able to get intel on what a seller needs from the sale of their home, so they can help you tailor your offer to meet those needs. Their expertise in the local real estate market will also help you not only get an offer accepted but get the best possible deal on a house.
Cater To The Seller’s Needs
Sometimes sellers need to sell their homes, but they also need the buyer to be a little flexible with them, too. Maybe they need to extend the closing so they can find a new place to stay. They may need to leave furniture or appliances behind. They may even want you to rent the house back to them for a month to give them time to buy a new house and move in. Find out if the seller has any special needs, and make clear in your offer that you’re open to catering to those needs.
Put Down A Bigger Deposit Or Offer More Earnest Money
If you can afford to make a bigger down payment or put down more earnest money than you’re required to, it shows the seller that your interest in the house is serious. It also shows that you’re financially capable of pulling the deal off. This can make your offer more appealing than offers from buyers who may seem like they’ve barely scraped the money together to buy a house.
Make A Cash Offer
If you’re buying with financing, you run the risk of being outbid by a buyer that can afford to pay cash. That’s because cash offers tend to close much sooner because there’s no underwriting to wait for. Cash buyers can also afford to waive the appraisal contingency, the financing contingency, and maybe even other contingencies, which can both speed up the deal and make things easier for the seller. If you can afford to make a cash offer, you’ll save on the interest charges and fees that come with taking out a mortgage, and you’ll have a better chance of getting your offer accepted.
Trying to buy a house in a hot market can be stressful. Do what you can to make your offer stand out, so you can win the bidding war and close on a house that’s perfect for you and your family.
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