Tips For Making A Winning Offer When Buying A Northwest Valley House
What started out as just as dream of owning that home has changed. You’ve found the one for you within your price range and you are ready to buy. It’s time to make an offer. But it has to be a good strong offer if you want to beat out all those other buyers interested in your dream home. Your offer will be in the form of a purchase contract. This is a legal document that details the price you will pay, where the money is coming from, the terms of your offer and other important aspects of the transaction. Before you can make an offer, you need to come up with a winning offer. So here are a few tips for making a winning offer when buying a Northwest Valley house.
1. Show Your Commitment
Maybe the most important aspect of making a winning offer is showing your commitment, that you are indeed a serious buyer. There are a couple ways to do this. One of the best ways to do this is by providing a written offer versus just a verbal offer. Written offers are taken more seriously, and they also allow you to highlight the points that make you a strong buyer.
The next way to show your commitment as a buyer is to get pre-approved for a mortgage vs pre-qualified. Pre-qualified means the lender looked at your paperwork. Pre-approved means that the lender verified the details of your paperwork. When you make an offer with your pre-approval letter in hand, you are far more likely to succeed in making a winning offer when buying a Northwest Valley house. Having a pre-approval letter will put you ahead of all the other potential offers who don’t have one, who still have to go through the approval process.
2. Make Sure the Offer is Competitive
Certainly, one of the first things a seller will want to know is how much you’re willing to pay – and you, of course, want to pay as little as possible. This is the tricky part, to strike a balance with a competitive offer that is still within your range. Think about this, if you initially offer an amount that is too low, it may be immediately rejected, and you may not have the opportunity to make a counteroffer.
Creating a competitive offer needs to consider a few different but very important aspects: comparative market analysis, absorption rate, how long the house has been on the market, other offers, the condition of the property and what might be important to the seller. A competitive offer doesn’t necessarily need to match the asking price – it just needs to be, well, competitive. This is one area where you really should lean on the knowledge of your real estate agent. Call (602) 806-8834 to find out more.
3. Offer More Down
Here is one strategy for making a winning offer when buying a Northwest Valley house. Offer a higher down payment. If your situation allows, this can put you well ahead of the other buyers because sellers always prefer more cash in hand. Typically, down payments range anywhere from 3% to 20%. However, when the market is competitive, a higher down payment can put you in the position of a serious buyer, and the deal will be seen as less risky since you have more skin in the game.
4. Limit Contingencies
Another strategy for making a winning offer when buying a Northwest Valley house is to limit the amount of or all contingencies. This provides the seller more incentive to accept your offer. Here are some of the typical contingencies. The inspection contingency allows you, the buyer a set amount of time to inspect the condition of the property before moving forward. This can be risky if there is a significant issue with the house because you have lost your opportunity to change your mind if you waive this. If you are handy or plan on doing some major remodeling this may not be as big a factor for you.
You just need to be aware of and understand the risks involved and decide how comfortable you are with assuming that risk. Here’s how the real estate professionals at HouseLogic put it: “Just remember to keep your eye on the big picture. If you and the seller are bickering over a $500 repair . . . keep in mind that’s a drop in the bucket in relation to the size of the bid.”
5. Read the Fine Print
Reading the fine print in the sales contract is important to making a winning offer. That contract contains key information about the property, such as address, tax ID, types of utilities, and so on. There are other things in the contract as well, such as any personal property the seller may be leaving behind such as appliances. This information is typically provided by the seller up front before any offers are made, this information is usually found in the MLS listing. You can use this in your negotiations, just be sure that the contract matches the information that was provided.
6. Work with a Good Agent
Once you make a formal purchase offer, it typically becomes legally binding when the seller accepts your terms. It is still common for terms to be changed or amended before closing, often with everything hanging on favorable inspection outcomes. So, making a winning offer and successfully navigating everything that comes after usually requires the services of a good agent. The key is to find the best tactics for each particular bidding situation. We are part of the 5% of agents who are Master Certified Negotiation Experts (MCNE), providing the best possible service for our clients.
If you really are interested in making a winning offer when buying a Northwest Valley house, contact us today at (602) 806-8834!
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