Home Buyers Guide to Sweetening the OfferBy Teresa Cowart in Blog,For Home Buyers. Tagged: Home Buyers • Home Buying • Making an Offer • Real Estate Advice
Coming up with a reasonable and fair offer in a real estate transaction is tricky enough but when it is a seller’s market, it gets that much more complicated. Here are some ways for a buyer to make an enticing offer to a seller without sacrificing contingencies and inspections!
What is a Seller’s Market?
First, let’s talk about what a seller’s market is so you know what you, as a home buyer, are up against. When the real estate industry is in a seller’s market this means that there are more buyers than housing inventory.
This will ultimately mean home prices tend to be higher due to supply and demand. Buyers need to have an edge in the competition as many situations will end up with multiple bidders.
While the Savannah, Ga area is not quite a seller’s market yet, it is certainly a strong market. Rates are excellent and homes are selling very quickly.
Hire a Professional
Tapping into the wealth of information through a Buyer’s Agent is very helpful during the buying process. In a seller’s market, buyers need to have all the help they can get to make the most attractive offer.
Buyer’s agents can not only help you with home showings but they can assist with offers, negotiations and research into exactly what the seller’s situation is.
Trying to do all of this on your own as a buyer is stressful and time consuming, not to mention some information only a seasoned professional will know.
It is always good to have someone on your side helping you take the next step to an accepted offer!
Get Yourself Approved
A buyer that has a pre-approval for a mortgage is a serious buyer in a seller’s eyes. Find a mortgage company and go through the steps to get the pre-approval.
To a seller this shows that you have the financial means to purchase their home and won’t have much difficulty in the mortgage process.
In addition to looking better to a seller, a pre-approval will also narrow down your home options in your price range.
Another good tactic with pre-approvals is to get approved by a few types of loans. Government backed loans (FHA and VA) tend to have more paperwork and getting the process finalized can take longer than a conventional loan.
Being approved for both shows sellers you not only want the house but that your mortgage process will be quicker!
Cash is King
If you have the means, offering to pay cash for a home is a major perk to a home seller. That means less time being caught up in financial paperwork for them and a quicker closing.
If you cannot pay cash for the entire offer, consider making a larger deposit. A buyer offering more earnest money than competition will rise among competing buyers!
In a seller’s market, buyers may have to get in touch with their creative side in enticing a buyer. Writing a letter to the seller expressing why their house is unique to you and why you would like to make it your own home is a creative way to tap into the seller’s emotions.
Another idea is to offer to pay some of the closing costs or fees that sellers often pay. Sometimes you have to think outside of the box to grab the seller’s attention that your offer may just be the best!
More Home Buying Resources
- How to Buy a Home in a Sellers Market – Kyle Hiscock
- Earnest Money-Do you Know What It Is? – Angela Duong
- 7 Facts You Didn’t Know About Home Mortgages – Lee Keadle
- Hidden Home Expenses – Anita Clark
- 7 Things to Consider Before Buying Your First House – Bill Gassett
- The Different Meanings of Escrow – Teresa Cowart
- The Worst Home Buying Advice People Actually Believe – Realtor.com
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