Perhaps you already know that a seller’s market typically means that there’re more buyers than there’re houses available for sale. In that situation, getting your offer accepted often becomes a difficult task because there’re more people competing for a single house.
So, what can be done to get that perfect home you’re aiming at? Try these tips that may make your offer an undeniable one.
Make a Clean Offer
Your offer should not have any financial constraints or be contingent on another property’s sale. Also, you shouldn’t include any kind of seller concessions like help with closing costs.
If possible, try to get the loan fully underwritten. It simply means having the entire loan process completed with the lender before you make an offer on a house. You may also think of giving up the inspection contingency. If the seller provides inspection reports from renowned companies, there’ll be little risk involved.
Go Above the Asking Price
A seller’s market isn’t something where you can make a low offer and hope the seller will accept it. Your offer has to be strong enough to stand out in a multiple bid situation. Therefore, if you actually want the house, it’s best to offer above the asking price.
Sometimes, offering just a couple of thousand dollars can help you accomplish the goal. It’ll help the seller understand that you seriously want to purchase the house. However, you should stay away from offering an unrealistic amount above the asking price. Or else, what you pay on your mortgage per month will significantly increase, which will end up costing you much more over time.
Put More Money Down
Regardless of the type of your loan, making a larger down payment is a positive sign to your seller. Basically, you should try to showcase you’re in a healthy financial position whenever possible. By putting more money down than required, you send a clear indication that you’re capable of fulfilling all financial obligations.
Make a Cash Offer
Whether you’re buying the house from an individual or a ‘we buy houses’ company that resells houses, try to make a cash offer if possible. When buyers finance using a lender, they become heavily reliant on the lender’s process.
This may lead to a negative outcome. Many lenders want to include appraisal contingencies for safeguarding their best interests, or they may want have an inspection done. These things may deter a seller, especially if the person has already received other offers.
Cash offers also prove that you’re serious and have enough money to expedite closing. You’ll solely be in control of the closing process rather than letting a lender dictate it.
While the above things may seem quite simple, their impacts can go a long way to help your offer stand out and, in turn, get you the house you’re aiming at. Try to go the extra mile, whether it’s establishing yourself as a serious buyer or proving that you’ve the financial means to fulfill all obligations. When you do these, the seller will surely notice your effort and take a second look at your offer.