Tips for crafting a winning offer

The first priority in buying a new home is you. A close second is the home seller. Make their lives easy, and your offer will rise above the others. Here are some strategies both you and them.

1. Set a budget

A home is an important part of one’s life–but so is living. When considering how much you can spend, don’t forget to consider all of the things you’ll want and need to do after you move into your new space that also cost money–from home improvements to regular vacations to college tuition.

2. Check the details

Read the fine print of a contract to understand exactly what will be left in the home, and what could be left. Knowing these details will eliminate surprises on move-in day and could also provide you mith more points for negotiation.

3. Get pre-approval

It’s the most important step in making a strong offer, and shows you have the funds to back up your offer

4. Make an offer above list price

It might seem obvious, but the highest offer is typically the accepted one. It might be difficult, but consider it if you can.

5. Increase your down payment

A higher down payment isn’t as risky for the seller, meaning a more attractive offer from you.

6. Waive contingencies

A common example of a contingency is a home inspection. Waive contingencies, and the seller has less to worry about.

7. Offer more earnest money

Putting more earnest money down again signals your commitment to buying the home.

8. Offer a flexible closing date

While a fast closing is usually more desirable, the seller may want to extend closing to prepare for moving out. Giving them that flexibility is a great gesture, and will help your offer to stand out.

9. Let the seller rent

Similarly, consider a back-rent agreement that lets the seller to continue stay in the house after closing. If the seller is at all worried about selling a house before finding a new one, this is a great strategy.

10. Consider an escalation addendum

State that you’re willing to raise your offer if higher bids come in–to any level you’re comfortable with.

11. Offer cash

This is the strongest way to show a seller that you’re serious. If you have the means, an all-cash offer removes many of the “moving parts” involved in a home sale.

12. Know that it’s not over with the first offer

There is a very good possibility that a seller will reject your initial offer and come back with a counter. Don’t panic–its a pretty standard part of the home buying process. Both parties can continue to negotiate until both sides agree, or one decides to end the negotiation. Just remember–counteroffers give you more information to negotiate with.

Bonus Tip. Talk to a trusted realtor

We’ve saved the best one for last. Home buying can be complicated, and sometimes stressful, but you don’t have to go it alone. Your area is filled with experienced realtors who can walk you throught the home buying process and serve as your advocate. Start your search for the perfect community realtor on Dwellane.