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May SunCrest Market Update – 5 Tips to strengthen an offer
Spring is typically a busy time for the real estate market, and this year is no different. With a competitive market of buyers out there, you could miss out on the home of your dreams if you’re not prepared. Here are 5 tips to help your strengthen your offer:
1) Pre-Approval
Don’t put he cart before the horse. Before you even look at a house, you need to get your financing in order. It’s easy — complete an official mortgage application, supply the lender with the necessary documentation (think: bank statements, pay stubs, and tax returns), and obtain your current credit rating. The lender then issues a pre-approval letter which can be sent with an offer. This lets the seller know you’ve got the financial means to purchase their home.
2) Earnest Money
Also known as earnest money deposit, this is a check you write to show your good faith (aka serious intentions) in your offer. Think of it as putting your money where your mouth is. Sometimes it’s refundable, and the amount varies though typically 1% is customary. In a competitive market, a stronger (and even non-refundable) earnest money deposit may help your offer stand out.
3) Deadlines
Nobody likes surprises when dealing with their biggest financial interest. Working quickly and efficiently through inspections, disclosures, financing, and appraisal, not only helps give confidence to their seller, but helps show your commitment to purchasing the home. Meet your deadlines to prevent the seller from pulling the plug.
4) Price
Sure, this may sound like a no brainer, but in our current real estate climate, many homes are selling at or above the seller’s asking price. If you’re negotiating tactic is to “start low cause you can always go up,” it may make the seller discard your offer altogether, especially if there are multiple offers on the table. Go too high, though, and you could overpay. This is where having experts in the field who can run analyses and play scenarios becomes a must.
5) Terms
You’ve heard the old adage “knowledge is power,” right? Now more than ever, there are so many tools, tips, and tricks to writing the terms of your offer. Are the sellers relocating? Are they wanting for kids to finish school? Are they selling the home “as is”? The key here is communication. Finding out what’s most important to sellers and making an offer that works for both you and them may actually win out over a higher price offer.
Our take:
If you find yourself in a competitive scenario, focus on what you can control. While you may not be able to submit the highest offer price, you may have the ability to give the seller time. Contrary, you may not have time with a pending job offer or school commencement, but may be able to offer a higher price. Whatever the scenario, we recommend leveraging the relationship of an experienced local market expert to negotiate the house you want to call home.
Our SunCrest Market Update is a hyper-local analysis of the most up-to-date information regarding the SunCrest real estate market. The previous month’s SunCrest housing information and future editions are released monthly.
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