In a hot real estate market, home buyers and sellers are often faced with multi-offer situations. For home sellers, they are able to sit down with their real estate agent and sift through the various home purchase offers that have been made on their property. For home buyers, it's important to be able to work with your real estate agent to not only know how to operate and win in a sellers market, but also know how to draft an offer that is going to stand out among the rest. Here's are some tips on how to write a more competitive home purchase offer:
Consider Writing a Personalized Offer Letter
While it's true that home sellers are listing their properties in hopes to generating a solid return on their investment, it's also an emotional transaction. Most sellers want to believe that they are selling their property to another buyer who will love their home as they did. To appeal to the emotional side of the real estate transaction, buyers can consider writing a personalized offer letter to accompany their home purchase offer. This letter should provide insight into the background of the buyer, the things they enjoy about the home, and their hopes for living in the property. When a seller can envision a new, happy homeowner in their property, they will be more compelled to accept that offer.
Make a Competitive Offer and a Healthy Earnest Money Amount in Your Offer
A Gallatin TN home purchase offer needs to be competitive. In a hot sellers market, some home buyers may be tempted to offer a amount lower than the purchase price or even attempt to low-ball the offer. These are usually not good options as other buyers, in a multiple offer situation, may offer the asking price or even higher than the asking price. In a competitive market, it's sometimes best to consider the asking price as the floor (the lowest price), not the ceiling. Whereas in a buyers market, the asking price is usually the ceiling (the highest price), and not the floor.
In addition to a competitive price, it's important to offer a healthy and competitive earnest money amount. Because earnest money rules and amounts vary in various parts of the country and in different real estate markets, it's often best to consider the advise of your real estate agent.
Offer Concessions that May Entice the Seller
When sellers are going through several different offers, they may look for significant differences that stand out between the various offers they received. Concessions can be an easy way to entice the sellers to go with one buyer's offer versus another buyer's offer. For example, a buyer who is interested in buying a home but has flexibility as to when they need to move in may offer a seller 30 days occupancy at no cost. Or, the buyer may opt out of a home warranty in order to save the seller a little bit of cash.
Add an Expiration to the Offer
An expiration on a solid offer adds a sense of urgency and encourages the seller to take advantage of the opportunity to accept the offer. It is important that buyers work with their real estate agent in order to determine the best expiration time to set for the offer. An offer that expires too quickly may cost the buyer the ability to purchase the home, whereas a lengthier period of time may give the seller too much time to consider a counter-offer. Generally, a well-crafted offer should expire within 48-72 hours, depending on the day and time that the offer is placed.
Given the fact that the home purchase offer could make or break an individual's ability to move forward with the purchase of their dream property, it's important for home buyers to work with an experienced real estate agent who knows how to draft powerful offers.
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