Real Estate Information Archive

Make Good Offers Better

It’s disappointing, frustrating and sometimes, discouraging when you lose a home you want to buy.

One of the hardest lessons for today’s buyers is that writing an offer doesn’t mean that you’ll get the home or even a counter-offer.  The low inventory affecting many of the housing markets requires a different strategy to give you the best chance to get the home you want.

1. Make your best offer initially; you may not get a chance to accept a counter.
2. Submit a written pre-approval letter from the lender.
3. Increase earnest money above what is considered normal.
4. Make a larger down payment.
5. Eliminate unnecessary contingencies.
6. Don’t ask for personal property not included in the listing agreement.
7. Pay your own customary closing costs.
8. Shorten the inspection period.
9. Buy the home “as is” subject to inspections which still allows you to get your earnest money back if the inspections are unacceptable but doesn’t require the seller to make repairs.
10. Write the seller a hand-written, personal letter telling them why you want their home; include a picture of your family.
11. Offer to use the seller’s or listing agent’s preferred title company.
12. If you can pay cash, do so and arrange financing after closing.  Be prepared to show proof of available funds.
13. Schedule the closing as soon as possible but let the seller know you can be flexible.
14. Once you decide on a home, act with expedience.
15. Ask your real estate professional if they have any other suggestions. 

 Think of making an offer like applying for a job. You want to make your best impression and show why you are the best choice.  You won’t always know that there are multiple offers.  Approach the process like the competition is doing their best to get the home. 

One of the anxiety highpoints during the sale of a home is waiting for the buyer’s home inspection report.  Most sellers willingly disclose what they know about their home to any potential buyers.  The concern stems from the inspector finding something that they’re totally unaware of and that it will either cost them a lot of money to correct or the buyer will simply use it to void the contract.

If the inspection does reveal some unknown problem with the home, it’s probably as big a surprise to the buyer who is not as emotionally or financially invested as the seller.  It is human nature to fear what you don’t understand and when a report identifies defects, they may simply opt-out of the home.

The solution to the situation may be for the seller to have the home inspected prior to putting it on the market.  There is still a risk of becoming surprised by an unknown defect which at that point, would have to be disclosed to potential buyers or repaired by the seller.  The advantage is that it creates a baseline to compare discrepancies that may arise when a future buyer has the home inspected.

If the seller’s inspection report is made available during the marketing process, it could give buyers a sense of confidence about the home even though they may still choose to have the home checked by their own inspector.

The cost of the inspection, possibly $500, keeps some sellers from taking this initiative when selling their home.  In an effort to minimize their expenses, they forego getting valuable, disinterested 3rd party advice that could help sell their home.  On a $175,000 home, the fee for the inspection will probably be less than 3/10 of one percent of the sales price.

Another option to the seller to increase marketability of the property and bolster buyer confidence in the home would be to offer a home protection plan.  Generally, the seller doesn’t incur cost for this coverage until the home is sold and there may even be some coverage for the seller during the listing period.  The benefit to the buyer is avoiding unanticipated expenses for specific items that are covered during their first year of ownership.

Contact me for recommendations of home inspectors or home protection plans.