Home Buying: Make the right offer and get noticed
With a decline in rent able properties in the US, there have been unprecedented levels of competition when it comes to buying homes. In many areas, almost every home on the market is selling quickly. It often takes just days, or even a couple of hours, before they are sold for full asking price or even more.
With that in mind, the most crucial thing when buying an investment property is to make an outstanding offer above the competition. We have compiled a list of reasons and ways to beat your competition with the right offer.
1. SHOW PEOPLE THAT YOU CAN ACTUALLY BUY THAT PROPERTY
Even the most attractive offer in the world is completely meaningless if you cannot afford it. One of the biggest fears for a seller is that their property will be removed from the market for a month or even longer, and afterwards, they learn that the agreement failed because the buyer was unable to obtain the financing. If you are a cash buyer, then this step is much easier. Just submit your bank account statement with your rational offer to show that you have the means to stand by that offer.
In the case that you wish to finance the property, a good way to stand out from your competition is to submit a preapproval letter from a reputable lender. This proves that you have the financial means to afford the property. Furthermore, it shows that the lender has completed all the necessary income, credit, and asset verification to prove that they will give you a loan.
2. OFFER A DECENT/LARGE EARNEST DEPOSIT
When you, as an investor, submit an offer to buy a certain property, it is a well-known practice to submit a “small” deposit to assure your seller that you are a serious buyer. This process is known as earnest deposit. In other words, if you do not have enough money to buy the property or if any unforeseen situation occurs, the earnest deposit is given to the property seller.
The deposit amount depends on the market, but a standard amount is about 1%. For instance, if you are buying a home that costs around $500,000, a reasonable earnest deposit is $5,000.
In case you want to win the seller over right away, consider introducing yourself as a very serious buyer who will offer a much higher earnest check. If the seller expects $5,000, then you may offer $10,000.
3. OFFER A “MATCH” OR BETTER
Offer to provide a match (or better) against the highest offer on items such as the earnest deposit, total price, closing days, etc. This is a bit riskier because you don’t know what the other offers will be, but it can be an attractive offer to the sellers and set you apart.
4. THE BOTTOM LINE
To be precise, sellers dislike uncertainty. By showing your financial capability through putting more money on the line, you can reduce the uncertainty in the seller’s eyes. Creating an offer as light as possible while protecting yourself, you can make an outstanding offer in a bidding war. In these situations, you will be expected to show full commitment and genuine interest in the purchase.
I really like it when folks come together and share ideas. Great site, keep it up. Margi Gannon Deva
Just wanna remark that you have a very decent web site , I enjoy the style it actually stands out. Carlynne Henri Gaivn
Wonderful Site, Maintain the useful work. Appreciate it. Michaella Kerby Dwain
Hello mates, pleasant paragraph and pleasant arguments commented at this place, I am in fact enjoying by these. Keely Udall Ultima
I am actually grateful tto the holder of this web site who has shhared this fantastic piece of writing at at this place. Cal Markus Giulia
I have read so many posts regarding the blogger lovers however this piece of writing is truly a good article, keep it up. Flossie Griff Christin
Very nice pattern and excellent content material , practically nothing else we want : D. Abbye Griffie Moll
Great post. Really looking forward to read more. Much obliged. Ynes Hadleigh Eva
This post will help the internet visitors for setting up new website or even a blog from start to end. Kelsi El Lala
I pay a quick visit daily some web pages and sites to read content, except this blog provides feature based posts. Tanhya Billy Limemann
Good way of describing, and pleasant post to take information regarding my presentation focus, which i am going to present in academy. Neysa Jefferey Blakelee
You completed a few good points there. I did a search on the subject and found nearly all people will consent with your blog. Noelle Hubie Tollman
Hi there! I just wish to offer you a big thumbs up for the great info you have right here on this post. I am returning to your website for more soon. Sydney Paten Brynna
Major thankies for the blog article. Really looking forward to read more. Cool. Shari Zeke Benni
Great delivery. Great arguments. Keep up the good effort. Gerrie Boycey Yacov
Appreciate it for helping out, good information. Bevvy Rollin Odin
I appreciate you sharing this post. Really looking forward to read more. Much obliged. Caroline Edvard Gasser
Including lists made up of bullet points is also an excellent strategy. Dorella Berti Yousuf
Way cool! Some extremely valid points! I appreciate you writing this post plus the rest of the website is very good. Jorrie Em Crin