A misconception to buying a house…. the highest priced offer gets the house, right? Not always…..
Conventional wisdom suggests that during negotiations, especially in a multiple-offer situation, whoever throws the most money at the seller will snag the house. That's not always true.
Sure, a hefty sum on an offer is the first thing that every seller wants to see, but any good real estate agent will advise their seller that each offer is a sum of its parts.
Here are just some suggestion we would discuss and to keep in mind when writing an offer and can help you try and beat that higher offer.
1. Cash is king
The bottom line is if you can buy with all cash, you will likely win out over a higher-price offer. This may sound like a lot to try and scrap together and not many can…but some do. Savvy sellers know the benefits of an all-cash buyer: There is no issue involving mortgages and lenders, the escrow closes faster, and there is no appraisal to worry about.
2. The next best thing to cash is a preapproval letter
Don’t start looking at homes unless you have one. This is important. A preapproval letter is the confirmation that you've acquired from your mortgage broker or bank that says you're ready to buy in a set price range and have been preapproved for the loan. People may be offering to pay more, but if they are not preapproved, you will have the leg up, even at a slightly lower price if we submit a copy of our pre-approval letter with our offer.
3. Timeline flexibility
"Closing" is your possession date. . Customizing the length of the closing to suit the seller's needs can often seal the deal over a higher priced offer. Sellers will generally want a closing that works best for their personal moving arrangements. Can be 2 weeks, 1 month or 90 days. . If you have all your ducks in a row, you may be able to do this. However, what if the house the seller is moving to won't be ready for 60 days? They'll need more time. If you are flexible and can bend to their possession, they will do the math on what it costs to move twice and the time and energy it tales is also a consideration on value.
4. The 'Please let me buy your house' letter
I know, I know, you are thinking this is soooo cheesy. However, a friend of mine had three similar offers on the table when he was selling her house. Two of the offers came with heartfelt letters. She was actually surprised and a little let down with the buyer who didn't send a letter because the others did. It made a huge impact — and she sold to one of the letter-writers, even though it was a slightly lower priced offer than the non-letter writer. Writing a letter may not get you the deal, but if you are the one offer that doesn't put pen to paper, it could lose it.
5. Not overloading on contingencies
Conditions are negotiating tools that give you an opportunity to walk away without consequence. The most common contingencies are the home inspection and financing . However, every contingency that you add has the potential to make your offer look weaker, because it makes it that much harder to close the deal. Lighten up on them and make sure you really need them before building them into your offer. We’ll make sure you are protected with the right condition on your purchase but we can do a few of them before the offer date and not have to add them to the offer. We will discuss what options you have and what we should include and can’t necessarily search out ahead of time.
Having the right REALTOR® representing you on your purchase will get you the right home, at the right price with all of your best interest put forth. Please call me direct at 204-223-0678 as I would love to work with you on your next home purchase.