How to make your offer stand out in a hot market, by Jenny Gonzalez.

By Jenny Gonzalez

How to Make Your Offer Stand Out in a Hot Market

The housing market may have slowed down in some areas, but inventory remains low in many places. These places have led to several bidding wars amongst prospective home buyers. That’s the nature of the current housing market.

Due to the competition amongst buyers, home prices remain high. With this competition going on, each buyer employed different tactics to outwit the other in bid to win their dream home. Home buyers who are not prepared for this multiple-offer scenario lose out, which can be painful. If you are worried about losing your dream home in these bidding wars, I will explain some ways you can make your offer stand out.

HOW TO MAKE YOUR OFFER STAND OUT

• Show Proof That You Can Close the Home

If you want the seller to consider you serious, the first thing you need to do is to show that you can afford the home. This proof could be a mortgage pre-approval letter if you intend to pay through a mortgage lender. If you are paying cash, you need to submit proof of funds alongside your offer.

• Put Down an Earnest Money Deposit

A good housing deal will attract multiple offers. If you haven’t gone through the buying process before, you’ll be amazed by what you people do to win a home.

Sometimes, you may not be able to compete with the home buyers, especially if their offers are all cash. At this juncture, you should put down an earnest deposit.

An earnest deposit is the money you submit with your

offer to indicate that you are interested in buying the house. This deposit depends on the nature of the market. In a lower-cost market, it can range between $500 - $1000, while it can be as high as $10,000 in the higher-cost markets. If you want to clinch that house, consider making an earnest deposit that is above the market. Eventually, it will be applied towards your down payment.

• Close Quickly

Getting a pre-approved letter from a mortgage lender is great, but your lender may require up to 30 days to close. While making an offer to the seller, I advise that you include the shortest realistic closing time frame. Even if it’s some days apart, you are still good to go. This way, you are in a better position of clinching the house.

• Your First Offer Should be the Strongest

If your dream home is located in an area where most inventory sells within a few days of being listed, then there’s not enough time to negotiate with the seller. If the home is priced $300,000, don’t make a lesser offer. Else, the seller will move over to the next serious buyer. You’ll need to make a stronger offer to show that you are ready to purchase the home. That is making an offer that’s 2% - 3% above the asking price.

• Get Rid of Appraisals

Waiving financial contingency is not usually a good move, but getting rid of appraisals can boost the chances of closing that dream home.

This means that you will be agreeing to pay for the difference if the home’s value doesn’t meet the offer price.

CONCLUSION

The right offer can make a difference. It doesn’t necessarily need to be making an offer above the asking price. There are other ways you can clinch a home aside from that, as explained in this post. With inventory and mortgage rates historically low, competition for homes is heating up. This is why you need to be smart with your offer on the table. A wellconstructed offer can make you stand out and give you the best chance of buying your home. If you need help selling your property, you can contact one of our TPIN agents Jenny Gonzalez. Gonzalez knows the in and out of the real estate market and can help you with selling your property in least amount of time.

ABOUT THE POWER IS NOW MEDIA

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-4018994 Website: www.thepowerisnow.com.

References

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www. rockethomes.com/blog/home-buying/how-to-get-offer-accepted-insellers-market&ved=2ahUKEwiGzuye_ZH0AhUBNOwKHYUwA68QFnoEC AQQBQ&usg=AOvVaw2jvqRpPViLB67y4EcmYt1T https://www.google.com/amp/s/www.millionacres.com/amp/real-estateinvesting/articles/7-ways-make-your-offer-stand-out/