3 Tips to Create an Offer Sellers Can’t Pass Up

Whenever putting in a bid for a house, some offers are more attractive than others. I’m going to show you how to draft an offer that will put you in a good competitive position to get the house you want. This offer not only has to be made, but it has to be accepted before you can call this home yours.

These tips won’t guarantee you will get the house, but they will help you become a leading candidate.

  1. Carefully consider your approach – If this property’s listing price is a good starting point, reconsider. Talk to your real estate agent and find out what similar properties in the area have sold for. Your best bet is to check in the past three months, as those will give you more accurate numbers. This will give you a better idea of where your offer stands in comparison to the seller’s asking price, and the market price.

How will you be paying for this place? Will you pay cash or finance it? Cash offers usually get you’re the best deal because it’s straight cash. No mortgage holes and loose ends to tie up. If you choose to finance it, but are offering a quick close, (less than 30 days), your agent can probably use that to leverage a better deal for you.

Be careful of throwing a lowball offer on the table. Ask your agent how this could play out. Sometimes it’s a great start to begin negotiations, but other times it can send the wrong message and totally derail the negotiation. It’s all dependent on the seller and the market.

When you are ready to submit your offer, back it up with all the details the seller wants to know. Your goal is to get the seller to believe this is the best offer on the table. They will need the completed offer paperwork; all the signatures from everyone involved, and if you are asking for concessions, make sure they make sense.

  1. Weigh the pros and cons of your request for repairs – asking for concessions is part of most offers. If it’s repairing the broken fence in the yard, or replacing the dirty old carpet, make sure these are reasonable requests.

In any competitive bidding situation the seller will choose (most likely) whichever offer requires the least amount of work. Have your agent make a list of “musts” and “pretty pleases” for the seller to tackle. Line up these concessions side by side with your offer and see which makes for the better deal.

If this negotiation is beginning to get strenuous and sometime has to give, consider revising your concessions in order to keep the deal on the table.

  1. Don’t be turned by emotions – Emotional intelligence can be a big factor here. Don’t let your emotions get in the way. Their offer price is the maximum price, and if you are financing, you’ve got a purchase ceiling. When this perfect home comes into your life, DO NOT let your emotions lead the way over math. How much can you comfortably carry in a mortgage payment per month? How much is this home actually worth? How long are you planning on staying in this home, and does that make sense to pay more than the asking price?

These tips are for traditional sales, not short sales, or buying from a bank after a foreclosure. Those types of sales have completely different negotiation tactics.  

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