When you find the perfect home in the area that you want and within your price range, you may think it is a dream come true. Unfortunately, there may be a number of other potential buyers who have a similar interest in the home you love. While it may seem a bit intimidating making an offer simultaneously with other individuals looking to buy a new home, there are a number of ways you can make your offer more appealing to a seller. Check out these tips to make your offer stand out from the crowd:
Demonstrate that you are a dependable buyer
Sellers want to be confident that a buyer will follow through with the payment. According to Investopedia, paying for a home with cash is especially appealing to sellers.
"In a competitive market, a seller is likely to take a cash offer over other offers because they don't have to worry about a buyer backing out due to financing being denied," said MLO Luxury Mortgage Corporation Managing Director Peter Grabel.
If you do not have the ability to purchase a house using cash, there are additional ways to demonstrate that you are dependable. Trulia noted that being pre approved or pre qualified for a home loan shows a seller that you are financially stable and a dependable buyer. A pre approval demonstrates that you are able to receive financing for a specific amount of money using a home loan and is a bit more attractive than a pre qualification. However, a pre qualification can also demonstrate that you have the financial standing to qualify for a mortgage.
Show your personality and humanize your offer
Bankrate recommended writing a letter to the seller. Real estate often has an emotional appeal. In some instances, sellers may be moving from a house they've owned for many years and has sentimental value to him or her. Letting sellers know that you are interested in their home and demonstrating why and how important the house is to you as a hopeful buyer can help your offer stand out.
"I always tell my clients: Do the letter," said Patty Da Silva, a real estate agent. "If the sellers live there, they love the house, and they are more inclined to give it to someone they have more in common with. It's the human factor."
Make a good offer
In many instances, buyers want to save money when making an offer on a home. This often is responsible for lowball offers. Unfortunately, it may also mean that your offer does not attract attention.
If you are willing to pay more for a home, it may be worthwhile to communicate that with the seller to increase the appeal. Discuss options with your real estate agent to make a reasonable offer that you can comfortably commit to without risking complete dismissal from the seller.
Make a home inspection more appealing to the seller
Home inspection contingencies may scare a seller. However, you should always hire a professional to evaluate the condition of the home. You can let a seller know that you are willing to negotiate options after an inspection and settle on an agreement which you both can feel confident about.
Bankrate suggested letting the seller know you will purchase the home 'as is'.
"An 'as is' inspection contingency lets the client find out the condition of the property and lets the seller know that the buyer will not ask for any repairs," said Buyer's Edge Vice President John Sullivan.
He also noted that if there are issues, you still have the option to walk if the cost associated with repairs is too high.