In Houston, the real estate competition is fierce. In fact, nearly 106,229 homes sold in 2021. Even if you place a competitive offer on a house, there’s no guarantee it will be enough to close the deal.
Buying your dream home is already so overwhelming. It’s like going on a first date – you can’t help but wonder if your next showing will introduce you to your perfect match. Plus, there’s so much to consider! Does it have enough square footage? Will it need extensive remodeling? Does it even have the right number of rooms? Similar to looking for a life partner, you want to choose a home that fits your lifestyle needs.
As soon as you find “the one”, the race to the finish line begins. Chances are, you’re not alone in your search, and you may not even be the only one interested in placing an offer. So, how do you get your offer accepted? Here are 7 tips on how to make an offer on a house, stand out from the crowd, and nab your perfect match.
Need some help closing the deal? Contact Bortoni Properties today!
7 Ways To Make An Offer, Stand Out From Other Applicants, & Get Accepted
Congratulations! You’ve found a home you can really see yourself in. You can imagine yourself sipping cider by the fireplace, lounging by the pool, or showing off that perfect library nook you have planned. But first, you need to put in a competitive offer.
1. Get Pre Approved
The first step to standing out in a sea of offers is to get yourself pre-approved. Instead of starting your home buying journey at an open house, take a trip to your local lender’s office. While you’re there, a loan officer will look at your income, assets, debt, and credit history. They’ll be able to tell you how much you can expect to borrow, your potential interest rates, and a range for your monthly payments.
After they’ve examined your finances, you’ll receive a letter for pre-approval. Now you can confidently know what houses fall in your price range and even close your deal faster. Most home sellers even expect you to have a pre-approval letter, so it’s best to not show up empty handed. You’ll give sellers peace of mind so they know they’re not wasting their time on someone who can’t afford their house.
2. Place A Clean No-Contingency Offer
When you place a no-contingency offer on a house, you’re telling homeowners that they don’t have to meet any extra conditions before the sale.
For example, a home inspection contingency commonly appears in real estate contracts. This means that if a home inspector finds any problems with the home, the buyer doesn’t have to follow through with their offer. If you place a clean offer on the house, you’re saying that you’re willing to buy the house without any contingencies like this.
Placing a no-contingency offer on a house isn’t always possible or advisable. However, if you can, placing a no-contingency offer can be competitive and uncomplicated.
3. Put Down A Strong EMD
An EMD, or earnest money deposit, is money that is put down before a house is closed. Also known as a good faith deposit, an EMD shows that you’re serious about purchasing a home.
When you enter into a purchasing agreement with your seller, they temporarily agree to take the house off the market. But, if the deal falls through, those days or weeks the house was off the market can really affect their bottom line. They might have even missed out on closing with another interested party.
When you put down an EMD, you’re going the extra mile to protect the seller’s interests. And, if the deal closes successfully, this money will simply go towards your down payment or closing costs.
4. Make It Personal, But Not Too Personal
Writing or typing up a homebuyer’s letter isn’t a requirement when buying a home, but it can definitely help your offer stand out. These types of personal letters might even influence a buyer to overlook offers that are higher than yours.
A homebuyer’s letter allows the buyer to see you on a human level. It provides some information about you and why you’re interested in the home. Do you have a strong personal connection to this neighborhood? Do you have small children that you’re hoping to raise in this area? You never know how your story might build a connection with a seller.
That being said – keep it light. Stay away from sharing overly personal information and have someone else review your letter before passing it on.
If you’re stuck making offer after offer in a competitive market, contact Bortoni Properties today!
5. Consider Your Strengths
Don’t be afraid to pad your offer, knowing where your strengths lie. If you have the ability to put down 20% on a down payment, do it. You should take every opportunity you can to show that you’re in good financial standing. Putting down a larger down payment than what’s required will communicate to a seller that you’re able to meet all financial obligations that come with purchasing their home.
We know cash offers aren’t always possible. But, if you can make a cash offer, do it. Cash closings are extremely attractive to sellers because they’re much safer and quick.
6. Be Ready To Acknowledge Any Weaknesses
Not everyone buying a home has perfect credit or an arm and a leg for their down payment. That’s okay! If you know you have discrepancies like a broken lease, be prepared and have a response ready in case you’re asked about it. The last thing you want is to be fumbling over a response while you’re trying to prove how trustworthy and reliable you are.
7. Talk To Your Realtor About Going Above Asking Price
Lowballing can start your relationship with a seller off on the wrong foot. I know it might be tempting to try and get the best deal possible, but the last thing you want to do is insult a seller or waste their time. Try talking to your realtor about starting your offer at or above asking price. If you love a home and are certain it’s the perfect match for you, it’s better to make sure your first offer is competitive enough to get the seller’s attention.
If starting your offer out high has you worried, talk to your realtor about adding an escalation clause. This way, you’ll be able to outbid any other offers up to a certain price.
Navigate The Houston Real Estate Market With Bortoni Properties
No matter what, it’s important to act quickly in a seller’s market. Whether you’re new to Houston or born and raised in the H, you need a realtor who knows their way around. With home sales up 9.3%, finding the right home for your family requires an experienced eye.