Ways To Get Your Offer Accepted In A Seller's Market

Ways To Get Your Offer Accepted In A Seller's Market Ways To Get Your Offer Accepted In A Seller's Market You’re finally ready to take the plunge and put in an offer on your dream house. You found something that is perfect for you and your family’s needs and you’re willing to pay the asking price. It’s a sure thing, right? Not so fast. A seller’s market means that there are more buyers than there are homes available for sale. It may mean that your full-price offer just isn’t going to cut it. 1)Make Your Offer As Clean As PossibleA clean offer should not be contingent on the sale of another property or have other financial constraints. It should also be free of seller concessions, which are things that a buyer asks for outside of the offer price, such as help with closing costs. At DNA Realty Group we suggest if you ask for closing costs then increase the offer significantly to fit that into the equation. 2)Avoid Asking For Personal Property - Drooling over the sparkly chandelier listed in the exclusions? Don’t ask for it. Want them to throw in that cool lawn furniture? Skip it. Your offer could be very similar in price to another offer that isn’t asking for items that belong to the seller. Asking for excluded items could weaken your offer. 3)Write A Personal Love To The Seller - A simple way to increase your odds of getting your offer accepted is to write a personal letter to the seller. At DNA Realty Group we suggest that you pay attention to the home when you see it and if you have any commonalities include it in your love letter. Describe your family and why it would mean so much to you to be the new owner and to live in the area and to grow your family there. 4) Offer Above-Asking - This is not the market for making low offers and hoping someone will bite. You will have to make your offer strong enough to beat out a multiple-bid situation. If you want the house, you’re likely going to have to go above the asking price. At DNA Realty Group we suggest you get realistic that you have to easily go $30,000 - $50,000 over asking price. 5)Put Down A Stronger Earnest Money Deposit (EMD) - Your earnest money deposit proof that you are a good-faith buyer. Usually, the real estate broker will hold onto your EMD and it will contribute to your down payment and closing cost. On average, EMDs are about 1% – 3% of the purchase price of the home. If you put a larger amount down, it may show that you are a serious buyer and that your intentions are genuine. At DNA Realty Group we suggest putting down 20% or higher if you can. Also to protect the money write that you will bring the remainder to the closing and only put down 3-5% up front to protect your money. Because you want to minimize the risk of your deposit. 6)Waive The Appraisal Contingency - An appraisal contingency can be given up as well – but, this poses the most risk unless you have enough cash to cover any potential shortfall between offered price and appraised price. David says "This is more risky and you have to work with a knowledgeable company in order to do it properly and as safely as possible." 7)Make A Larger Down Payment In Your Loan Program - No matter what type of loan you choose, offering to pay more down is another sign of good faith to your seller. As we’ve indicated with several of the previous points, anytime you can showcase that you’re in a good financial position, you should do so. This situation is no exception to that rule. By putting down a larger down payment than you have to, you send the message that you’re serious about the purchase and capable of meeting all financial obligations. 8) Add An Escalation Clause To Your Offer - An escalation clause means that your offer will outbid other offers up to a maximum price. This means that you make an offer saying you will pay X price for a home, but if a higher offer comes in, you will increase your offer to Y price. David from DNA Realty says "this has to be done right and presented only if properly prepare