How to Ensure You Put in a Competitive Home Offer
In terms of the home buying process, one of the most stressful components can be that moment when you put in your bid on the home you’ve fallen in love with. You’ve put in the time to find your dream home, you’ve done the walk-throughs, and you’ve already pictured building your life in this home. But, how can you be sure that your purchase offer is going to be enough to set you apart from competing offers on your dream home?
Ensuring that your offer packs a punch is all about heading into the process with a game plan. If you want to stand out, and make sure that your offer is accepted over someone else’s, then the first thing you need to do is jump! Don’t wait! You won’t win the bid by being passive, so make sure you and your realtor have a pre-planned approach to win the sale. Sure, you may still find yourself in a bidding war, but there are a few key things you can keep in mind as you strategize your offer. Here’s how to ensure yours is competitive:
- Do your due diligence – Before you lay down an offer, make sure you know exactly what’s important to the seller. In other words, know what terms they are and aren’t willing to bend on. Things like flexible (or tight) closing dates, or small household repairs, etc., for example, might not matter to you so much, in which case you should go to the seller’s agent to let them know where you stand. Your flexibility might be more enticing to the seller over a competing offer making too many demands.
- Keep it simple – Buying and selling a home is complicated enough, so don’t make it more stressful by overcomplicating matters. Don’t let yourself get caught up on the little things like bad paint colors on the walls, or a few stains on the carpet. If these superficial, nit-picky matters are all you’re getting hung up on, then you’re going to miss out on a great opportunity, as sellers aren’t going to be looking for someone making unnecessary demands.
- Match the selling price – When making a competitive offer, keep in mind that your offer needs to be realistic. This means basing it on market value while also being aggressive enough to make your offer stand out among others. If your heart is set on a particular home, then don’t be afraid to offer the seller’s asking price, right out. It’s about knowing the value of the property and balancing it with how badly you want to “win” your dream home.
- Strengthen your offer – By increasing the percentage of earnest money you’re willing to put down, it will show a seller that you are committed to your purchase. While this can be a little bit of a risk, it makes a huge impact with sellers who are looking for a serious buyer.
With these tips in mind, you can help ensure that you put in a competitive offer to acquire your dream home. The most important thing is to know your market and your own desire to fulfill your chosen purchase. Home buying is a process that requires patience, attention, and the ability to shrug things off when things don’t go your way. But, keep at it if your first home offer isn’t accepted. There’s always going to be another dream home and a seller looking for your offer.