3 Characteristics Of A Winning Home Offer
In a seller's market, the person selling their home often has a great deal of leverage. Sellers in this type of market have greater liberty to accept or reject offers at will. For this reason, buyers with non-competitive offers are often met with disappointment when they find out that the seller has rejected their offer. Rather than face this outcome, it is important to learn about some of the characteristics of a good offer.
1. Pre-Approval
Sellers are often on a timeline; they have a clear date by which they want to sell their home. Buyers who already have pre-approval at the time of their offer more closely align with this goal than buyers who do not.
For example, a buyer without pre-approval could discover that they are not approved for a loan to cover the amount of the home or that they are not approved at all. When you submit a pre-approval with the offer, it lets the seller know you are ready and able.
2. Acceptable Concessions
It is normal to ask for certain concessions as part of the home purchase, but those offers that are more likely to be accepted are those with reasonable requests. Unreasonable offers are met with a denial.
For example, asking a seller to make multiple cosmetic upgrades, cover the closing cost, and leave behind furniture and appliances that were not originally part of the sale is a bit much. Think about what the needs of the home are and center the concessions around these requests.
3. Fair and Reasonable Offer
A home is a special place of memories. To the seller who has listed their home, it may be the place where they raised their family or maybe the last place they spent time with a now-deceased loved one. The point is that it is a special place.
When a buyer submits a low-ball offer, sellers look at the offer from an emotional place and often reject these offers. Buyers do not have to offer an overinflated amount to satisfy the seller, but they do need to ensure that the offer is fair and reasonable. Depending on the market, this figure might be asking price or shortly above it.
The helpfulness of being represented by real estate agents cannot be understated. An agent understands the makeup of a competitive offer and will work alongside you to prepare one so that you are one step closer to homeownership.