Home buying is a long process that does not end in simply finding the perfect home to buy, because after you find that home, you're gonna have to convince its seller that your offer is the best one. The offers given to your choice of property may be more than one in number so you may need to compete with the other offers. Also, even if your offer is the only one the seller has, this is still no assurance that you will get the deal. This is why creating an effective offer is a crucial thing. Here are some tips for you to do this:
Give An Appropriate Offer
It is undeniable how important a buyer's asking price is to the seller. Although many other factors may affect a real estate deal, the asking price does play an important role. This is why it is important for buyers to not only give an appropriate price offer, but also to offer an amount that is close to what the seller is asking. Your agent may advice you to ask for a lower price and the seller may ask for a price that is a bit high for you. The best thing to do in this situation is to assess whether what the seller is asking is an overpriced cost or not. If you think that the property is properly priced based on the current market and your agent's advice, what you can do is to offer a price that is close to what the property is being sold for. Besides, the seller may have also put in an allowance for clients' bargaining.
Offer A Quick Closing
Aside from the asking price, one of the best factor in an offer is the closing date. Sellers typically want to close as quickly as possible. However, since each market is unique, the general rule of thumb is to offer the seller a closing date that is three to four weeks away, counting in the mortgage approval process. So if you think that you have no problems making the purchase, go ahead and offer a faster closing, to show the seller how serious you are in buying the property.
Shorter Option Period
The option period refers to the period of time the buyer has until he/she can no longer back out of the deal. This period is typically used to assess your third party reports including the property inspection reports and the likes.
If you want to attract the seller, you can offer a shorter option period because buyers are generally locked into the real estate deal after this period. Although of course, you must ensure that the short option period that you have is enough assessment time for you.
Higher Earnest Money
Earnest money refers to the non refundable deposit a buyer gives the seller to show his/her good faith in proceeding with the transaction. To make sure that you got the seller's attention and to show that you are motivated to buy the property, you should be fearless enough to offer a higher "good faith" amount.
