Putting Your Best Offer Forward
Posted: Nov 25, 2014 by ecoREsource Properties
Bozeman is quickly turning into a Seller’s market with multiple buyers competing for the same property. We recommend that buyers consider putting their best offer in…the first time around.
When you make an offer on a property, the seller can accept, reject or counter offer your offer. That being said, you want to make your offer as appealing as possible. Try to see your offer from the seller’s perspective. Here are 5 ways to be the ideal buyer and greatly improve your chances for success.
1. Submit a Reasonable Offer
Consider making an offer above or at asking price, or close to it. Don’t “lowball” the seller, especially if the property has just come on the market. This is the number one reason offers are rejected. Sellers can be insulted by an extremely low offer. Keep in mind that sellers often have their own expenses to pay with the sale proceeds: their agent fee, existing mortgage balance, and a deposit on their future home purchase.
2. Attempt to Meet the Seller’s Needs
Be flexible and show some restraint when including contingencies. While some conditions might be needed (i.e. an inspection), try to put aside the little things, and concentrate on the bigger picture: you want the seller to accept your offer. Forego asking the seller to pay for items like home warranties, lender fees, and minor repairs, or to include their personal appliances in the sale. And, if the seller needs more time to close, or requests to close early, try to accommodate their timeline.
3. Be a Financial Star
Show the seller that you have your financial “ducks in a row.” Even before you begin your house hunt, get preapproved, or at least pre-qualified for your loan. Include a preapproval letter with your offer. Or, better yet, offer cash if you are able to. Sellers love all cash offers; they are less likely to fall through. Consider increasing your earnest money to show your commitment.
4. Make Your First Offer Your Best
You might only have one shot, so make sure you get it right. Offer the highest price you are willing to pay. You might be tempted to offer less, and wait for the seller to counteroffer. Resist this temptation since the seller could very well reject your offer, and not counter, especially if they receive more appealing offers from other buyers.
5. Add a Personal Touch
Consider including a personal “love letter” with your offer. Sellers often feel an emotional attachment to their home. Tell them how much you love their home and why it would be the perfect house for your family.
Although following these 5 tips don’t guarantee that the seller will accept your offer, it will help you stand out from the competition, increasing the likelihood that your offer will be accepted.