Make Your House Offer to Stand Out 2024!

The housing market is unusually competitive due to the pandemic. Buyers may have to use some additional tricks to convince sellers to accept their offer. Here are some things to do and not to do when you're ready to purchase a new house to make your offer stand out.

Make Your Highest Offer First

A seller will almost always prioritize a higher asking price over all other factors. Don't let emotions overpower you when you are looking for a house. You need to be prepared to walk away from a house, no matter how much it may appeal to you. This will prevent you from getting a mortgage that you cannot afford. Do not undersell yourself. You may be able to close the deal if you can afford to pay a little more in a competitive market.

Do: Get Pre-approved for a Loan

Mortgage Preapproval is a tedious process, especially if the house you want to buy doesn't end up being available. Being preapproved can help you convince a seller you are serious about your offer and can afford it.

You'll have to provide your lender with several documents and let them run a credit report to get a mortgage pre-approval. They will then determine the amount of mortgage they are willing to finance and provide you with a certificate confirming their offer.

By showing your sellers your financing plans, you can help them feel more confident that they will be able to close the deal.

Do: Remove as Many Contingencies Possible

In competitive markets, it's more likely that your offer will get accepted if you have fewer requirements. There are many types of contingencies, and the less you have the better.

Appraisal contingencies are one type of contingency. They allow you to withdraw your offer or cancel the deal if you think the property's value is less than what you plan to pay.

If you remove the appraisal contingency "nothing changes" - you still buy the property at the original agreed price.

A Physical Contingency Is Another Common Type!

We state that "no matter what condition you find, it's still a purchase."

If you remove these contingencies, you may be putting buyers at risk. Make sure you fully understand the implications of your decision before you make an offer.

If your home inspection shows any structural problems, you may be liable for costly repairs. You can eliminate the physical contingency if you plan to do a major renovation after moving in.

Do: Write down as much of your work as possible

Limiting the amount of your purchase that you will finance is another way to attract a seller’s attention.

Many sellers also prefer no-loan contingencies, where the buyer makes a substantial and funds the rest of the purchase in another way. Sellers also like no-loan conditions, in which the buyer pays a significant downpayment but funds the remainder of the purchase in another way.

Don’t: Write a Love Letter

Many buyers believe that they will have a greater chance of having their offer accepted by the seller if they like them personally. Although this may be true it is risky to make personal contact.

We state that it is not allowed in the region, and the National Association of Realtors strongly warns against this practice because it could be the beginning of a slippery path toward housing discrimination.

In a recent post, NAR stated that "to entice a buyer to choose their offer they sometimes write 'love letter' to describe the reasons why the seller should "pick them." While this may appear harmless, the letters can pose a fair housing risk because they contain personal information about the buyer and reveal their characteristics, such as race or religion.

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