When you find your dream home you want to ensure your offer is a shoo-in. Here are several ways you can make your offer stand out from the crowd and be the most desirable for the sellers.
First, and most importantly, get preapproved for a conventional loan. Truth be told, this should already be a part of your home buying plan. This will expedite the buying process come closing time. It also shows the sellers that you have financing available and are a serious offer.
Cash offers are always a great leg up on the competition. This is one of the most popular go-tos to make an offer most desirable. This is because it's seen as a guarantee that a buyers financing won’t fall through since they already have it ready in hand. Dependability is definitely a factor you want in your favor.
Use human emotion to your advantage. Simply sharing your story and what owning this home would mean for you could endear you to the current homeowners. Our homes are intrinsically tied to our emotions. They are filled with memories and often times we want to know it will be well taken care of by the next owners. Don’t use this to be manipulative but by writing the owners a genuine letter you just might put yourself in the top running.
Have an inspection done within five days. Show your seriousness and readiness to take action swiftly. You may even want to include an “as is” inspector contingency. An inspector contingency means that the entire purchase is dependent on receiving a satisfactory inspection result. And when you agree to take it “ as is” you are basically saying you are willing to bypass negotiations based on any problems that may come up during an inspection.
You can also make a noncontingent offer. Contingents are usually based on appraisal and financing. A noncontingency offer makes for a more appealing offer if competing with cash offers, however, it is a risky one. It is very important to know the level of risk you are taking on if you go this route and should only be done if you feel extremely confident in your chances.
Include an escalation clause. An escalation clause is an offer that allows you to start with an amount on the low end of your budget but fully disclose what amount you are ready to increase your offer to should anyone offer a higher or more appealing bid. Before including an escalation clause ensure that the sellers haven’t already stated they will not accept an offer with an escalation clause. Some sellers do this to try to get potential buyers to outbid each other on their first offer.