Ways to Make Your Home Offer Stand Out
You’ve found the home of your dreams, and now it’s time to make it yours. This is an exciting time, but you also need to make sure your offer stands out to the homeowner. There’s a long list of things that can get in the way of your offer, so how do you land the sale?
In this competitive market, you can use any edge you can get over the competition. If homes are in short supply in your market, you need a way to persuade sellers that you’re a serious homebuyer worth considering. Here are the best ways to make your home offer stand out.
1. Offer to Pay Cash
Cash speaks loudest when buying a home. The notorious home investors and home flippers who snag the best deals all come equipped with cash. Let’s face it, who doesn’t love cash? It’s much more reliable than a complicated mortgage process.
Cash offers are less likely to fall through before the sale closes. In 2016, for example, home sales failed nationally at a rate of almost 4%. This is higher in some markets. If you can afford to pay in cash, this is a great way to make sure home sellers take your offer seriously.
2. Have Your Preapproval
Of course, not everyone can afford to pay cash. If you’re like most homebuyers, you’ll need to get a mortgage. Before you start home shopping, get preapproved for a mortgage. It’s recommended that you apply for a mortgage 3-4 months before you begin shopping for homes. This gives you more than enough time to get the initial paperwork out of the way and make sure there are no problems.
Having a bank’s preapproval won’t guarantee that you’ll land the home sale, but it does show sellers you’re serious. A pre-approval means you have verified income and credit score, so you have evidence that you can actually afford the home you want.
3. Add an Escalator Clause
An escalator clause is an agreement that you’ll up your offer if there’s a higher bidder from another buyer. This can be risky if you don’t have much wiggle room in your budget, and you might also pay over the market value. However, it’s an effective way to show you’re serious and get your offer noticed.
4. Make a Strong Offer
One of the simplest ways to get your offer noticed is to start strong. You might only have one chance to get it right, so offer what you’re willing to pay. Compare your offer to recent sales for similar properties nearby. If you start off too low, you might miss out to better offers right off the bat.
5. Connect with the Buyer
You can actually take matters into your own hands to connect with the seller to show you’re the best buyer. This is especially true if you haven’t met the current owners personally. Share what you love about the house, who you are, and why you want to live there.
More importantly, thank the homeowner for their time. A simple “we appreciate you accommodating our tour” goes a long way. Sometimes, it’s these small things that leave a lasting impact.
6. Offer More Time
Finally, many home sellers are working with a strict schedule. They might want to remain in their home even after closing, and this can be a unique leveraging point for your offer. Offering them to “rent back” or “lease back” the space can help them choose you over other offers.
When the previous owners then become renters, you’ll become their landlord. However, if you’re flexible and willing to be patient, this can work in your favor.
Landing the Sale
Finding the home of your dreams is only the first step. If you want to actually get your offer noticed, you need to be strategic. In some markets, homes sell at lightning speeds. While the national average time it takes to sell a home is 68 days, it’s not unusual for home buyers to have several offers on their property.
These steps above will help your offer stand out so you can land your dream home. You’ll be moving in faster than you know it.