You’re finally ready to take the plunge and put in an offer on your dream house. You found something that is perfect for you and your family’s needs and you’re willing to pay the asking price. It’s a sure thing, right? Not so fast. A seller’s market means that there are more buyers than there are homes available for sale. It may mean that your full-price offer just isn’t going to cut it. So, what can you do to get that perfect house you’ve searched for high and low? These tips might push your offer to the front of the line.
1. Make Your Offer As Clean As Possible
A clean offer should not be contingent on the sale of another property or have other financial constraints. It should also be free of seller concessions. Kristina McCann, founder of Chroma Realty, suggests that traditional contingencies (loan, appraisal, inspection) are like protection. Giving them up makes your offer more appealing to a seller because you have less opportunity to back out of a contract. You can still protect your interests by getting your loan fully underwritten before offering, or by waiving the inspection contingency if the seller has provided reputable inspection reports.
2. Avoid Asking For Personal Property
Drooling over the sparkly chandelier listed in the exclusions? Don’t ask for it. Want them to throw in that cool lawn furniture? Skip it. Asking for excluded items could weaken your offer. Benjamin Ross, Corpus Christi REALTOR®, says, "If you want a chandelier or lawn furniture, go to Home Depot. If you want to seriously compete for and win the bid on this house, it is important for you to remain focused in achieving your goal: buying the house."
3. Write A Personal Letter To The Seller
A simple way to increase your odds of getting your offer accepted is to write a personal letter to the seller. James McGrath, licensed real estate broker at Yoreevo LLC, says, “While some sellers only care about the price, others are emotionally attached to their homes and want to make sure it will be in good hands.” By including a letter that tells the seller a little bit about yourself, why you love the house, and why you want to make it your home, you can make the difference in close bidding situations.
4. Offer Above-Asking
This is not the market for making low offers and hoping someone will bite. If you want the house, you’re likely going to have to go above the asking price. Sometimes, you only need to offer $2,000 – $3,000 more to achieve the effect you’re going for. Doing this will show the seller that you’re serious about buying the home, and that you want them to consider you as a potential buyer. Keeping your offer aligned to the home’s value, while still above the asking price, will help you secure the home you’re interested in.
5. Put Down A Stronger Earnest Money Deposit (EMD)
Your earnest money deposit is proof that you are a good-faith buyer. On average, EMDs are about 1% – 3% of the purchase price of the home. If you put a larger amount down, it may show that you are a serious buyer and that your intentions are genuine. But, if you do put more of an EMD down, make sure you intend to buy the home. If you’ve already signed the contract and don’t buy the home, the seller could keep your EMD as compensation for the time wasted.
