How to Make a Competitive Home Offer
Have you been making home offers for months without getting one accepted? Then you need a new strategy. Here’s how to make a competitive home offer in today’s hot real estate markets.
Give sellers what they want
Simply put: You want what the seller has. To get it, you have to figure out exactly what they want—and then deliver.
Ask the listing agent about the seller. Why are they selling? Have they lined up another property yet? Are they moving out of town? Put yourself in the sellers’ shoes and imagine what you would want if you were them.
For example: Are the sellers in contract to purchase a home? Then tempt them with a quick, clean sale to ease their stress. Get your inspection and appraisal done ASAP and remove all your contingencies so the seller knows you’re a sure thing.
Get your loan lined up
By the time you make your offer, your mortgage loan professional should have your entire file in place and updated. When you’ve done this, the only unknowns for the seller are the appraisal and the title report, which come later.
Make sure the seller knows you’ve gone to great lengths to get your loan lined up. With the input of your mortgage professional and real estate agent, make your offer non-contingent on financing. That way, you’re as good as cash. To cover yourself, make sure to order and complete the appraisal early on.
Overpay if necessary
If you’ve never tried to buy a home in a hot market before, this may sound like insane advice. But most buyers in competitive markets end up paying top dollar once they’re caught in a bidding war.
Work closely with your agent, determine what price would take you over the edge, and know whether or not you could have an appraisal issue. Many buyers before you have gone through this process, and you got this far for a reason.
Buyers in hot markets find themselves in competitive situations because they not only want what everyone else wants, but also what’s in limited supply. While we can never predict what’s going to happen, if you are in the game for the long haul and plan on financing with a 30-year-fixed mortgage, chances are you’ll be glad you made the effort.