You found the house you’ve been searching for! The one where you and your family instantly fell in love as you walked through the doors. You took pictures of every crevasse and wall to look back on. It is the perfect home for you! You have already discussed room arrangements with the kids and are planning to make an irresistible offer to the seller. But, what makes a good offer? How can you make one that doesn’t come at a huge expense on your end but will give you a bit more leverage over other offers? Here are some ways to do just that!
1) Offer above asking price
Now you don’t need to go a huge amount over asking to make an impression! Just going $2,000-$5,000 over will show the sellers that you are interested. That’s depending on the asking price before hand and what shape the home is in of course! If the home is the one you want though, this is a good way to show the sellers that you are serious about buying.
2) Don’t ask for personal items
If you are wanting to get the seller’s attention… This will absolutely do it! But, not for the reasons you hope for. Focus on buying the house and not the possible inclusions. It could come across as rude and frustrate the sellers of the home. Now if there is an item that you would like to negotiate, then of course try to negotiate it into the deal! Understand though that if the home you are wanting is being looked at by various potential buyers, the seller may go with an offer that doesn’t ask for any extras. So keep that in mind when making an offer! Is it more important that you get that piece of furniture, or the house?
3) Write them a letter
Writing the sellers a personal letter gives you the ability to stand out aside from other buyers. Some sellers only care about the price of their home, but a lot of them are emotionally driven as well. They are attached to their homes and the memories that were created there. So by writing a letter about why you and your family love the home; it can give you a one up on other buyers.
4) Add in an escalation clause
This means that you will outbid other offers until the maximum amount. Basically saying that if someone came in and offered x amount of money, then you will come back and automatically offer more until you reach the asking price on the home. Still remember though that the sellers could always counteroffer or raise the asking price at anytime. Always consult with your realtor about the best options and if adding in an escalation clause is in your best interest.
5) If you can, pay with cash
This allows the process to stay more between the sellers and the buyers, instead of going directly through the lenders. When buyers finance they often are unable to call many of the shots. Instead the lenders do! So by paying with cash it not only shows your seriousness in buying the home; but also gives you more control of the closing process instead of the lender.
6) Put down a larger earnest money deposit
By offering 3% instead of 1%, this gives you yet another advantage when making an offer. Sellers will feel like you are more committed and willing to finalize the purchase. It also gives them just an extra sense of security. If they see someone who only puts in 1%, then it makes them feel as if they have nothing to lose and could easily walk away from the deal. By putting more in, it allows them to see your seriousness and eagerness to buy their home. Making it a lot more likely that they will choose your offer over another.
7) Review your final offer before submitting it
Double, triple, and quadruple check your final offer before finally sending it! Try to make it as perfect and as finalized as possible. If you make any mistakes the seller may not even give you a second shot! So be sure that everything is included in your final offer- such as missing important information or the EMD. This is the time to make your perfectionism shine! Don’t miss a single detail in your offer. This could make or break the deal!
Sometimes the smallest things make you stand out. So by thinking more emotionally, you can get through to sellers a bit more easily. Also, it doesn’t hurt to give a bit more when you know a home is the one for you! You want to at times give more than the bare minimum. Especially when what you get is a beautiful home in the end. Obviously that is always within reason though! Don’t make an offer that is going to be damaging to you in the long run. Be smart and impress, but be practical at the same time. Work with your agent and listen to their advice. They will have some good ideas as well as to how to make an irresistible offer! It is definitely a long and drawn out process to buy a home. You have to wait on the timeline of others to get to the end goal, and the in between is filled with so much uncertainty. It may take a bit of time and negotiating, but remember that you will get there! Try these little tips to help put the ball in your court instead. Good luck!