4 Tips For Making a Competitive Offer

Most areas of the country are experiencing a brisk real estate market. Well priced homes are moving quickly and often sellers have multiple offers from which to choose. How can you make your offer stand out and put you in a better position to get the home? Fortunately there are a few things you can do to make your offer more attractive to sellers.

4 Tips for Making a Competitive Offer

1.   Offer a Fair Price – When the market is moving quickly, this is not the time to throw out a low ball offer and hope they negotiate. Write an honest price based on market values.

2.   Have a Pre-­‐Approval – It may not be enough to simply offer a pre-­‐qualification letter. When issuing a pre-­‐approval the lender verifies your qualifications and an underwriter gives preliminary approval based on the actual home and a good appraisal.

3.   Flexible Timing – Not everything comes down to price. A seller who is relocating might be more interested in an offer which gives them extra time to move.

4.   Attractive Terms – Most offers include contingencies for items like appraisal, inspection, title, loan approval among others. Working with your lender and real estate agent, consider removing any contingencies you don’t need. If you plan to remodel extensively for instance, you might remove the home inspection contingency. This provides more confidence in your offer vs the competition.

The most important thing in a competitive real estate market is being prepared. Working with your lender and agent, you will understand your options and be able to write a solid offer quickly, putting you in the best position to have your offer accepted.

How to Get Over Losing Out On Your Dream Home

“I’m so sorry, they went with another offer.” It’s a shocking thing to hear; you’ve already moved into that dream home in your mind. It’s common to start second guessing yourself, even condemning yourself for not offering more money or better terms, but the truth is sometimes it just doesn’t work out. The next step is to figure out how to move on.

• Go Ahead and Mourn – It’s perfectly reasonable to mourn the loss of the “perfect” home.

• Take a Break – This might not be as easy as it sounds if you need to move, but even a short weekend off to regroup and refresh will allow you to continue the search.

• Understand What Went Wrong – It may be that you did nothing wrong and the seller got an all-cash offer 20% over asking, but it’s still a good idea to talk with your agent about your offer, make sure you truly offered a fair price with reasonable terms and if not, make adjustments next time.

• List What You Liked About the Home – Make a list of the features you liked about the home – open floor plan, big yard, expansive view, etc. This will allow you to watch for these features as you continue the search.

Losing out on your dream home is sad, but it doesn’t mean you won’t find another home you love just as much. Take some time to think through the experience and keep going – there are so many homes to choose from, you’ll find another home to love.