5 Elements of a Successful Real Estate Offer
With all the competition on the market right now, it’s the perfect time to talk about creating a competitive real estate offer.
There are a lot of variables that go in to buying a home. You figure out what you want, schedule showings, and then, one day, you find that perfect house. Sure, it’s got its kinks and things you’d like to change, but you know it’s the one you want. What happens next?
You’ve started to build an emotional attachment because you know it’s the one you want. It’s natural for buyers to feel the need to overpay in order to increase their chances. But there’s a better way to increase your chances - submitting a strong, persuasive offer. Here’s what goes into that.
5 Elements of a Strong Home Offer
Financing. One of the main reason home purchases fall out of contract is because of financing. For that reason, sellers focus on the type of financing you have. Conventional loan types will always appear stronger than the rest. One thing we can do here is specify a preferred loan type (FHA, for example) but be sure to point out that you’ve also been approved for a conventional loan.
Inspection. There are different strategies and timelines to go about the inspection. Talk to your agent about how you can navigate this process to make your offer appear stronger
Price. Price isn’t everything, but it’s still important. Coming in with a strong offer that prevents a bidding war may save you money in the long run.
Earnest money. This shows your commitment to the client. We typically recommend 1-3%.
Contingencies. You want to make sure you have enough contingency to protect yourself and your earnest money, but overlapping contingencies makes your offer look weak. Talk to your agent about this.
The best agents will encourage (and help) you to write a letter to the seller. People form an emotional attachment to their homes and they often care about who the buyer is. They want to know that the buyer will love the home as much as they do. That's why writing a letter that highlights why you love the house and the strengths of your offer is an effective practice.
Looking to put in a strong offer on Snohomish County real estate? Get in touch below, we’d love to help you through the home buying process!