As a buyer, your success often rests on your ability to put together your best offer. Whether it’s your first time purchasing a home or your tenth time making an offer, always remember that every seller is unique. One seller may want to stick with their asking price, while another may be open to offers within a certain range. In truth, this is something you can’t control. However, you can put your best possible offer on the table. Here are four ways to get on the right track.
1. Get Pre-Approved
Pre-approval is a solid way to show a seller you’re financially responsible. All sellers want to know the person buying their home can actually afford the expense. For them, this helps to guarantee the process will be smooth and hassle-free. During pre-approval, a lender will verify your income, current debts and credit history to get a full picture of how much you can borrow. They will then draft a letter you can present to the seller with your offer.
2. No Lowballing
Unlike coming prepared with pre-approval documentation, lowballing suggests you are not ready to buy a home. While offering $230,000 on a $250,000 home is reasonable, for example, you wouldn’t want to offer $100,000. A seller will see this as a waste of their time. If you believe a home you’re looking at is overpriced or in need of serious repair, the best thing to do is ask your agent to perform market comps. You should also request a home inspection to determine how much it would cost to fix any issues in the home. Lowballing from the get-go, on the other hand, implies that you are not a serious or knowledgeable buyer.
3. Limit Contingencies
Some contingencies are necessary. For instance, you may need to make your offer contingent on the sale of your own home or your own financing timeline. However, the more contingencies you add to the equation, the less attractive you’ll be to a seller. As we mentioned earlier, every seller is different. They may need to move quickly. If this is the case, they’ll see multiple contingencies as a major hindrance. When it comes to smaller issues like repairs, consider disregarding this type of contingency unless it’s extremely important. It will only slow down the process for everyone involved.
4. Consider a Personalized Offer Letter
Personalized offer letters may be a little old school, but they provide a way to introduce yourself to a seller and explain your specific situation. Many buyers like to do this if they’re coming in with a lower offer, or if they have certain requests that require clarification. You may not meet the seller before the purchase, so writing a few paragraphs about your family and your interest in the home can be a wonderful way to present your offer. In some situations, this small gesture can be what separates you from the rest.
How Golden Lenders Can Help With Your Offer
Golden Lenders helps home buyers in Colorado, Florida, California, and Ohio understand the different types of mortgages that are available and provides loans to help people achieve the dream of homeownership. Since the specifics of which mortgage to choose is dependent on a variety of factors, we encourage you to call us for more information and find out which is right for you. Need more information about what to do before buying a second home? Call us! Our number is (303) 482-2361, or you can send us a message.