It’s finally happened – you found the perfect house. It has exactly what you are looking for, it’s in the right neighborhood, and it’s actually in your price range. All you have to do now is make an offer and start packing, right?
Unfortunately, you may not be the only potential buyer out there who has their heart set on this house, and your offer may not be the only one a seller has to consider. Here’s what you need to know to make sure your offer is the one a seller can’t refuse.
Get pre-approved for a mortgage
We’ve said it before and we’ll say it again – if you’re serious about buying a home it’s imperative that you get pre-approved for a mortgage. Sellers in Southern California will not even look at an offer that doesn’t come with a pre-approval. The pre-approval must have income and credit scores verified. A pre-approval signals to the seller that you are serious. Do yourself a favor and take care of this necessary step before you even begin looking at homes.
Make a connection with the seller
Whether or not a seller connects with you will influence which offer they eventually accept. Homeowners often develop attachments to their homes, and may be more likely to sell to a potential buyer who has the same emotional response, as opposed to an argumentative or insulting buyer who bids higher.
Don’t bid too low
It can be difficult to know sometimes if other offers have come in for the same house you are bidding on. While you don’t have to offer the listed price, if you do offer a lower price be prepared to explain why. Know what the comps in the neighborhood are as well as any potential repairs that will need to be made to the property.
Include an escalation clause
Escalation clauses are becoming more popular. Essentially they state that the buyer will agree to increase the offer by a predetermined amount if other offers come in that are higher.
Have deposit money ready
While you may not be in the position to make an all-cash offer, consider having enough money ready to increase the amount of the deposit. Show how serious you are with a larger deposit. It has worked time and time again when The Begley Team advises their buyer to do this. It could mean the difference between winning a bidding war – or not.
If you’re selling your current house while you’re buying a new one, consider selling first so that the deal is not contingent on its sale. Most sellers prefer not to deal with contingencies, and if there are several offers on the table they’ll likely go with the one that has the fewest contingencies. We always shorten contingency time frames. For example, shortening the home inspection contingency from 17 days to 7 days. We work hard and we work fast. This will put the seller at ease knowing that within 7 days, we will come to an agreement regarding repairs the property may need.
Write a letter
In addition to making a connection with the seller, if you feel strongly about the home consider writing a letter to the seller, telling them about yourselves and why you love their home. That kind of emotion could be enough to seal the deal.
The bottom line is, if you really want to make sure your offer is the one that stands out, be as prepared as possible. It could mean the difference between moving into your dream home and accepting a compromise.
The Begley Team has sold over 1,500 homes. We know how to properly advise buyers so they can be confident in knowing they are doing all of the right things to be chosen among multiple offers. The Begley Team is highly respected by their colleagues, which is a true benefit to their clients in competitive deals. We communicate properly and build rapport with all parties involved.
Compliments of Brandon Begley | The Begley Team | Berkshire Hathaway California Properties | Demand Excellence | Over 1,500 homes sold since 1975 (818) 368-0290 | www.BegleyTeam.com | Voted top Los Angeles REALTORS® by Los Angeles Magazine- 2012, 2013, 2014 & 2015