5 Simple ways to set your offers apart to get the deal
Are you tired of submitting offers and being overlooked? Areas like Stockton, Lodi , Tracy and Lathrop have been inundated with new buyers from the Bay Area and the local real estate is getting more competitive. Many of these suggestions have been used in high priced areas for years which is why many of Bay Area buyers are already doing them. Educate yourself and the one or more of the suggestions below to turn that no into a yes.
- Get Pre-Approved
There’s a difference between a pre-qualification and a pre-approval although most people don’t understand the difference. A pre-qualification is something lenders can provide to potential borrowers after running credit, analyzing your financials, and an automated underwrite. A pre-approval goes beyond a pre-qualification by nearly completing the loan process minus the property. This process takes longer but it will expedite your potential close time and it will give you an edge over the competition.
- Let the seller get to know you
Enclosing a thoughtful letter has been known to persuade sellers to accept one offer over another. Although someone may be selling the home they may still have some sentimental attachment to the home or neighborhood. Before making the offer consult with your agent to see if makes sense to write a letter to provide the owner comfort that the home and neighborhood will be good fit for you and your family.
- Make a non-contingent offer
This something I will never tell a borrower to do, but many times it will send a loud and clear message to the owner that you are determined and ready to buy their home. Inspection and Loan Contingencies exist to protect the buyers’ earnest money deposit in a transaction. When removing contingencies you essentially say that if I pull out of the transaction my deposit is surrendered.
- Offer to guarantee the value
After an offer is accepted there isn’t a guarantee that the appraiser can reach the value you’re seeking. Real estate prices have been on the rise and sometimes there aren’t suitable comps for an appraiser when they’re attempting to determine value. A way to reduce the fear over the appraised value would be to offer a maximum amount of money over the appraised value if it came in low.
For example: Offer 300k – If the appraised value comes in lower than offered price buyer will pay up to 5k over the appraised value for a total not to exceed 300k.
- Increase your earnest money deposit
Show the seller you’re serious by doubling or tripling the EMD. Having more invested in the transaction will give the seller a positive feeling about your offer.