Home Buying 101: 5 Keys to Make Your Offer Stand Out in a Seller’s Market
May 7, 2021
With a national shortage of home inventory and historically low interest rates, anyone looking to buy a home or investment property is aware that it really is a seller’s market out there.
So … if you’re in the market to purchase a home, how can you make your offer more attractive or win in a bidding war?
Negotiating on price alone doesn’t always cut it. Then what should savvy buyers do? Here are 5 keys to help your offer stand out in this market:
- Work with an experienced realtor and a solid lender.
Find someone you trust who truly knows the local market. It’s also helpful when your realtor has connections to other realtors — not only to view the “private” (i.e., non-public) listings, but also to keep a pulse on other properties in neighborhoods you like that might come on the market soon.
If you have a good relationship with a lender or mortgage broker, they can guide you early in the process to shore up your credit report, ensure you’re showing your best financial picture on paper, and keep things moving swiftly through the loan application process.
- Show them the money.
If possible, include your proof of funds to close (if it’s a cash offer) or a pre-approval letter from your lender. Knowing that you’re already in a strong financial position can solidify your interest and help seal the deal. In a seller’s market, some buyers even waive the appraisal contingency to make their offer more compelling. If the home appraises under the contract price, the buyers provide their own money to make up the difference.
Additionally, if yours is a corporate relocation, showing you don’t need a financing contingency or that you’re pre-approved for a bridge loan can also help your offer stand out.
- Don’t sweat the small stuff.
If there’s personal property not included in the listing (such as specific furniture, appliances or outdoor equipment), now is not the time to ask a seller for any “extras” if you’re competing with other offers. Yes, you can live without those curtains.
- Consider skipping the inspection contingency.
Although you can still have a professional inspection done to provide information on any issues with the house, this might offer a bit of leverage with a seller, since you’re willing to assume all the risk (and expense) to fix any issues yourself. Check to see if a pre-listing inspection has already been done. Another, more neutral, option is to shorten the time to resolve any inspection issues. Lastly, you could also ask for a general inspection contingency which gives you the right to void the contract, but not ask for repairs.
- Get personal.
Sometimes delivering an offer in person (via realtors, if applicable) affords you the chance to explain a bit about you, the buyer. This is also the opportunity to write a letter to the seller. In the “Dear Seller” letter, share what you genuinely love about the home, introduce yourself (and your family), share why you’re moving to the area, and point out specific strengths of your offer. It’s all about making a personal connection.
On your quest to find your dream home, using these tips can help you navigate the home-buying process. We wish you the best!
If you’re considering a move throughout Chicagoland or even overseas, Beltmann offers relocation and storage services for any size house or budget. Call us at (866) 252-2383 or visit our website for your free estimate today.
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