After scouring your ideal neighborhood and getting your finances in proper order, you’ve finally found your dream home. Now comes the tricky part—creating a purchase offer that the seller will accept. The housing market may have cooled a little, but inventory is still low, meaning there’s a good chance you’ll be thrown into a bidding war with another buyer.
You’re already in love with the home and will fight tooth and nail for it. Losing would crush your heart, so you obviously want to win. However, how can you do that without making ridiculous bids and overpaying? Here are four ways to make a purchase offer that will sway any seller to your side:
1. Save as much as you can before buying. Preparation is key. If you’re getting into a bidding war, you have to be armed with as much cash as you can save up. Before entering the market, it would be wise to set aside money that you can use for the purchase. It will not only give the seller the impression that you’re capable of closing the deal, but will also allow you to confidently make your bid price and down payment. Additionally, you can use that money to navigate situations where the appraisal came in lower than the offer price.
“In the seller’s eyes, a pre-approval is basically a green light.”
2. Get your mortgage pre-approved. After saving enough money to feel confident with your offer price, you need to get pre-approved to verify your budget. This step will require your finances to be thoroughly reviewed and evaluated. In the seller’s eyes, a pre-approval is basically a green light. Without it, your chances of winning your dream home are slim. You’ll most likely be passed over for another buyer who has been pre-approved.
3. Have some room for negotiation in your offer. Don’t go all-in with your offer price. This leaves no room for future negotiations, and you’ll be forced to back out of the deal if interest rates increase. However, you shouldn’t make a lowball offer either. You only risk offending the seller by doing so. Instead of maxing out your pre-approval or lowballing, make an offer that’s competitive. Work with an experienced agent to help you come up with the best bidding offer and counteroffer.
4. Build rapport with your seller. While money is a major deciding factor for sellers, it’s not the only criteria. If you’re buying a home, it won’t hurt if you build rapport with your seller. Talk to them and tell them why you love the master’s bedroom, or how you’ve always wanted to have a dining area that’s as spacious and well-designed as theirs. Remember to be sincere. Almost too often the homebuying process can be very transactional, but if you can tug at their emotions, and they remember your name with a positive feeling, you can increase your chances of winning.
Getting your offer accepted can be a huge cause of anxiety, especially in a seller’s market. However, with the help of these strategies, you can gain an edge over your competition. If you need more help on how you can win your dream home, call or email me. I’m happy to be your real estate consultant.
