If you’re buying property in 2022, your offer to purchase will probably be up against offers from other engaged buyers. Below are ways you can make your offer stand out from the competition and be the one that gets accepted.
Mortgage Pre-Approval
#1: Get your mortgage pre-approval from a respected firm. A pre-approval from an unknown or big-box lender may incur suspicion in a seller’s mind. We’ve seen sellers ignore offers from buyers that get pre-approved by internet lenders. By collaborating with a local credit union or bank, offer your seller a good reason to understand your pre-approval is legitimate.
#2: Work with a local lender to provide your borrowing commitment in two weeks or less. Yes, specific lenders might get the job achieved this fast. For more data, contact us directly.
#3: Ask your mortgage lender to act as your agent when you submit your offer. The necessary action gives the seller considerable confidence that you will close with no issues.
Engage a Realtor
#4: Partner with a realtor with a good track record in this year’s market. Working with a proven team is far better. A group of real estate agents can cooperate closely to gradually meet your time-sensitive needs for looking at a property and crafting your offer.
#5: Craft the seller’s preferred closing date within your offer. In a competitive scene, you seek to do all you can to meet the seller’s preferred terms. Delivering the seller their desired closing date is an excellent way to push the scales in your favor.
#6: Write an above-average amount of earnest money into your offer. The typical earnest money check is about 1% of the offer price. Make your offer more special by submitting a higher-than-average earnest money amount.
Make a Winning Offer Bid
#7: Deliver a better impression with your earnest money by providing it with your offer.
#8: If your finances permit, outline a down payment amount of at least 20%-25% in your financing contingency. This helps you gain an edge over other buyers who put in less cash.
#9: Consider whether you need to put an appraisal contingency in your offer to purchase. Right now, many winning offers need to include this detail. Talk to your buyer agent about the benefits and drawbacks of putting an appraisal contingency in your offer to purchase.
Make a Cash Offer
#10: Render your offer firmer by making it a cash offer – even as you buy with a mortgage. If you hold accounts that need more cash to close, you may use such accounts as proof of funds and submit a cash offer. Once your offer is accepted, you can opt to finance with a mortgage in place.
#11: Don’t submit your offer dependent on the sale of your current home. Instead, work with your lender to get pre-approved for financing that doesn’t require you to sell to buy. Consider that you may continue working with your agent to sell your home and buy your new one on the same day.
#12: Provide your seller with the “right to cure” defects in your home inspection contingency term. Don’t allow the seller to think you may back out of the offer by outlining “no right to cure.”
Make Contingency Provisions in Offers
#13: Deliberate over whether you should put a radon testing contingency in your offer. In a competitive scenario, you should test for radon after you buy your home. Discuss with your buyer agent over the pros and cons.
#14: Recent litigation reveals that businesses have been mainly unsuccessful in collecting on their business interruption coverage for COVID-19 losses. The main reasons for this are policies having exclusions over viruses.
