Making an Offer

In a "hot" real estate market, where many of the transactions end up in "multiple bids", you will want to differentiate your offer from the others that the owner may be receiving. This will set you apart and bring them back to your offer again and again.

Here are some Tips on how to make your offer STAND OUT!

Get the Seller to Like You!

You can let the seller know who you are and why you have chosen their home. You can do this by writing a personal note to be submitted with your offer, or give your agent permission to share your sentiments with the owner of the home.

Remember that the seller has lots of memories tied up in their property and is emotional when it comes to the choosing the offer they are going to go with. You will want to share the things that you love about their home that will allow them to envision you and your family in the home. Making the contract more "human" can take the stress out of the process.

Minimize Contingencies

If you have chosen to make inspections on the property, limit them to the inspections that are warranted. A seller really hasn't sold their home until it has passed the inspections and the contingencies have been removed. If you are going to have inspections, (and I would recommend that you do have a general home inspection and inspection of private water and sewer systems) you will want to do so in a timely manner.

Escalate Your Offer

If you are in multiple bids, this is not the time to start with a "low ball" offer. Why not consider making an offer that the owner will find hard to resist. As long as the listing price of the property is justified (and it probably is if you are in multiple bids), open with the offer that you are willing to pay for the home and tell the owner it is your "highest and best" offer. This will let them know that you are serious and want to move on.

Close as soon as is Practical

Although there are restraints with financing, be sure to close as soon as possible. Have your Realtor confirm the best possible close date with the loan officer you have chosen and submit that date on your offer. The faster the deal closes, the less everyone has to worry about. If the seller knows where they are moving to, this works well. If they are still shopping for a home, consider allowing them to stay in the home for a short period of time (not to exceed 30 days due to lending restrictions) so that they can tie up their affairs. They might leave prior to the date of the contract, but they will be grateful that your took their needs under consideration.

Offer "Serious" Earnest Money

Nothing says you are serious more that the money on the line. If you place $500.00 in earnest money to hold a property, the seller may not even notice the earnest funds. When you make a $3,000 earnest money deposit, they will take notice every time. Please understand that your earnest funds are protected by both the inspection contingencies and the financing contingencies. If either of these processes doesn't work out, your earnest funds are returned to you. What this says to the owner is, "I really want your home and I am willing to take a risk for it."

Have a Pre-Approval in Hand

Contact your lender and provide a pre-approval from a reputable lender that you have confidence in. Be sure to provide them with the documentation that they request prior making your offer. This way the owner of the property is aware that the transaction is already underway, we just need to plug in their property.