Below are some suggestions that may increase your chances of getting the seller to accept your offer. Some of these will sound like “common sense”, but remember sometimes common sense is elusive.
- Include a copy of your Pre-Qualification Letter or Proof of Funds: In this day and age, most sellers will not even consider an offer unless the buyer can prove that they have been either pre-qualified for a loan or have the money to pay for the purchase if they’re making a cash offer.
- Make sure you fill out the contract in it’s entirety: Do not leave blanks on the purchase agreement, it leaves the offer open for interpretation and unclear on the buyers offer.
- Closing Date: Most offers that are contingent upon financing will require anywhere from 30-45 days for the lender to be able to fund the purchase. If you are obtaining Conventional financing, 30 days is standard. If you are obtaining FHA or VA financing, the standard days for funding run closer to 45 days. Cash offers, depending on the sellers time frame, can usually close shortly after the buyers home inspection contingency has passed.
- Offer Amount: Prior to submitting your offer, ask your buyers agent to run a search on the local MLS for sold comps that are nearby and similar to the property you’re interested in making an offer for. Perhaps include a printout of those sold comps as an Addendum to your purchase agreement so the seller can see what other properties are selling for. Sometimes, sellers confuse reality (market value based on sold comps) vs. their emotional attachment to the property (sentimental value).
- Escrow/Good Faith Deposit: If you’re offer is contingent upon financing, usually 3% of the offer amount (minimum of $1,000) will be sufficient. If you’re making a cash offer, 5%-10% is very common. I cannot stress enough that cash offers with the minimum of $1,000 Escrow are viewed as weak offer by the seller.
If you would like to have a one-on-one with one of our experienced buyers agents, please don’t hesitate to contact us. There is no fee, there will never be any high pressure sales. We believe that knowing how the home buying process works prior to making an offer makes for a smoother transaction and happier buyers.
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