If you are a home buyer, here are some questions for you: How many houses have you viewed? How many open houses have you attended? Now the final question: has your real estate offer ever been accepted? That’s probably a big fat nope.
If you have experienced this scenario, then you know that offers will get rejected. And sometimes, that offer is yours. But what do you do if your real estate offer isn’t getting accepted? How can you finally get the home of your dreams?
Here are a few points to ponder: as of spring 2018, inventory is low. That means it is a seller’s market. More buyers means that a typical offer just isn’t going to cut it right now. You need to beef up your offer strategy to make sure that yours is the winning real estate offer. Here are some tips you should incorporate into your next offer situation:
- Letter to the seller: When a seller has received multiple offers for their property, it can be difficult to distinguish one from the other – especially if the offers are similar. To make your offer stand out from the pack, include a letter to the seller. The point is to persuade the seller that yours isn’t simply the right offer, but you are the right person for their home. Try to create a connection, stay positive and enthusiastic, but keep it brief. If you need help with what to write, you can download a template from Shamrock Home Loans to get you started.
- Include a lender letter: It’s not enough to say how much you want the house – you need to prove to the seller that you are a solid candidate, financially speaking. Who wants to plow through the offer negotiation process only to find out that the buyer cannot really afford the place? Provide a letter from a reputable mortgage lender, such as Shamrock Home Loans. This assures the seller start that you have both the love and the finances for the home.
- Use a real estate agent: Maybe you are trying to view homes and negotiate an offer on your own. Who can blame a buyer from trying to save some money? But there is a potential problem with this – the seller might be cautious of working with buyers who don’t have representation. The seller may not want to be the guinea pig, so to speak, and may decide to forego your real estate offer. However, a real estate agent has the education and experience to know the ins and outs of the transaction – with success.
- Make your offer “clean”: Here’s another good way to help get your offer accepted – make it as “clean” as you can. Don’t request crazy concessions, avoid asking for that cool lawn ornament or velvet Elvis picture, and don’t make your offer contingent on certain financial constraints. Now, that doesn’t mean you should make no requests. If your request is common, easy, and reasonable, then sure, go ahead. But simple and clean should be the state of your real estate offer.
- The bigger the better: When it is a seller’s market, you sometimes have to do certain things to get the job done. In the case of an offer, you may need to go above asking, especially in a multiple bid situation. If you want to compete, then you have to put your best offer forward. But it doesn’t stop there – also you can make a larger down payment than required by your pre-approval. This shows your seller that you are in a good financial position. Finally, give a larger earnest money deposit. This shows you are serious about the home and intend to follow through with the purchase.
- Be the student: Keeping that smile on your face when your real estate offers are being rejected is hard. But with each rejection, see what you have learned. Maybe you need to shorten the closing. Perhaps you need to tighten up your offer. Or you need to increase your real estate offer amount. Look back to each situation to figure out why your offer wasn’t accepted, and then apply that knowledge to the next time. That knowledge will only help.
Even if you think your offer is great, there’s no telling what the seller thinks. Little things can go a long way to making – or breaking – the deal. If you want help navigating the world of offers, give Shamrock Home Loans a call. We have been there and done that, not only with our clients, but with ourselves too. Let’s work together to make home ownership a part of your reality today.
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