{"id":288,"date":"2022-05-03T13:55:45","date_gmt":"2022-05-03T13:55:45","guid":{"rendered":"https:\/\/thompson-baxter.com\/vantagerealty\/?p=288"},"modified":"2022-05-03T13:55:47","modified_gmt":"2022-05-03T13:55:47","slug":"5-ways-to-write-a-winning-offer-in-todays-real-estate-market","status":"publish","type":"post","link":"https:\/\/thompson-baxter.com\/vantagerealty\/2022\/05\/03\/5-ways-to-write-a-winning-offer-in-todays-real-estate-market\/","title":{"rendered":"5 Ways to Write a Winning Offer in Today\u2019s Real Estate Market"},"content":{"rendered":"\n\n\n\n\n

5 Ways to Write a Winning Offer in Today\u2019s Real Estate Market\n<\/strong><\/p>\n\n\n

\nOur nation is in the midst of a serious housing crunch. Last year, a lack of inventory and soaring prices left many would-be homebuyers feeling pinched. But now, with interest rates climbing, many of them are also feeling desperate to lock in a mortgage\u2014which has only added fuel to the fire.1\n<\/p>\n\n\n

\n<\/p>\n\n\n

Fortunately, if you\u2019re a buyer struggling to find a home, we have some good news. While it\u2019s true that higher mortgage rates can decrease your purchasing budget, there are additional ways to compete in a hot market.\nYes, a high offer price gets attention. But most sellers consider a variety of factors when evaluating an offer. With that in mind, here are five tactics you can utilize to sweeten your proposal and outshine your competition.\nWe can help you weigh the risks and benefits of each tactic and craft a compelling offer designed to get you your dream home\u2014without giving away the farm.\n<\/p>\n\n\n

\nDemonstrate Solid Financing\n<\/strong><\/p>\n\n\n

The reality is, no one gets paid if a home sale falls through. That\u2019s why sellers (and their listing agents) favor offers with a high probability of closing. \nSellers particularly love all-cash offers because there\u2019s no chance of financing issues cropping up at the last moment. But don\u2019t despair if you can\u2019t pay cash for your home. According to the National Association of Realtors, only about 1 in 4 home purchases are all-cash deals, which means the vast majority are financed with a mortgage.2\n<\/p>\n\n\n

\nIf sellers are assured that financing will come through, buying with a mortgage doesn\u2019t have to be a big disadvantage. The most important step you can take as a buyer is to get preapproved before you start looking for homes. A preapproval letter shows sellers that you are serious about buying and that you will be able to make good on your offer. \nIt\u2019s also important to consider the reputation of your lender. While sellers may not know or care about a lender\u2019s reputation, their agents often do. Some lenders are much easier to work with than others, especially if you are pursuing certain types of mortgages like FHA or VA loans.3 <\/p>\n\n\n

If so, you\u2019ll want a lender who specializes in these types of mortgages. If you\u2019re unsure who to choose, we are happy to refer you to reputable lenders known for their ease of doing business. <\/p>\n\n\n

\n<\/p>\n\n\n

Put Down a Sizeable Deposit\n<\/strong><\/p>\n\n\n

Buyers can show sellers that they\u2019re serious about their offer and have \u201cskin in the game\u201d by putting down a large earnest money deposit. \nEarnest money is a deposit held in escrow by a title company or the seller\u2019s broker or lawyer. If the purchase goes through, it is applied to the down payment and closing costs\u2014if the sale falls through, the buyer may lose some or all of that deposit.\nWhile an earnest money deposit is typically around 1-2% of the sale price, offering a higher deposit can help demonstrate to the buyer that you are serious about the property.4 However, this strategy can also be risky. We can help you determine an appropriate deposit to offer based on your specific circumstances.\n<\/p>\n\n\n

\nAsk for Few (or No) Contingencies\n<\/strong><\/p>\n\n\n

Most real estate offers include contingencies, which are clauses that allow one or both parties to back out of the agreement if certain conditions are not met. These contingencies appear in the purchase agreement and must be accepted by both the buyer and seller to be legally binding.5\n<\/p>\n\n\n

\nCommon contingencies include:\nFinancing: A financing contingency gives the buyer a window of time in which to secure a mortgage. If they are unable to do so, they can withdraw from the purchase and the seller can move on to other buyers.\nInspection: An inspection contingency gives the buyer the opportunity to have the home professionally inspected for issues with the structure, wiring, plumbing, etc. <\/p>\n\n\n

Typically, the seller may choose whether or not to remediate those issues; if they do not, the buyer may withdraw from the contract.\nAppraisal: Most lenders will not offer a mortgage on a home that costs more than it’s worth. An appraisal contingency gives the buyer an opportunity to get the home professionally assessed to ensure that its value is at or above the sales price. <\/p>\n\n\n

If an appraisal comes in low, the seller may be asked to renegotiate the contract.\nSale of a prior home: Some buyers cannot afford to purchase a new home until they sell their previous one. If the buyer is unable to sell their current home within a specified window of time, this contingency enables them to withdraw from the contract without penalty.\nSince contingencies reduce the likelihood that a sale will go through, they generally make an offer less desirable to the seller. <\/p>\n\n\n

The more contingencies that are included, the weaker the offer becomes. Therefore, buyers in a competitive market often volunteer to waive certain contingencies.\nHowever, it\u2019s very important to make this decision carefully and recognize the risks of doing so. For example, a buyer who chooses to waive a home inspection contingency may find out too late that the home requires extensive renovations, and a buyer who waives the appraisal may risk their mortgage falling through. If you back out of a home purchase without the protection of a contingency, you could lose your earnest money deposit.6 We can help you assess the risks and benefits involved.\n4. <\/p>\n\n\n

Offer a Flexible Closing Date and\/or Leaseback Option\n<\/strong><\/p>\n\n\n

When it comes to selling a house, money isn\u2019t everything. People sell their homes for a wide variety of reasons, and flexible terms that work with their personal situations can sometimes make all the difference. For example, if a seller is in the process of planning a significant move, they may prefer a longer closing timeline that gives them time to find housing in their new location. \nSimilarly, short-term leaseback options, in which the sale is completed but the seller retains the right to rent the home for a specified period of time, can be compelling.7 <\/p>\n\n\n

These arrangements enable the seller to use the money from the sale of their home to purchase their next house. A leaseback agreement also makes it possible for them to avoid moving twice when their next home is not yet ready to occupy.\nFlexible closing dates and leaseback options can provide a powerful advantage for first-time homebuyers. If you have a month-to-month or easily transferable lease, for example, you may be able to offer a more flexible timeline than a buyer who is simultaneously selling their existing home.\n<\/p>\n\n\n

\nOf course, the value of these terms depends on the seller\u2019s situation. We can reach out to the listing agent to find out the seller\u2019s preferred terms, and then collaborate with you to write a compelling offer that works for both parties. \n5. <\/p>\n\n\n

Work With a Skilled Buyer\u2019s Agent\n<\/strong><\/p>\n\n\n

In this ultra-competitive real estate market, one of the greatest advantages you can give yourself is to work with a skilled and trustworthy real estate professional. We will make sure you fully understand the process and help you submit an appealing offer without taking on too much risk. \nPlus, we know how to write offers that are designed to win over both the seller and their listing agent. <\/p>\n\n\n

The truth is, listing agents play a huge role in helping sellers evaluate offers, and they want to work with skilled buyer\u2019s agents who are professional, communicative, and courteous. \nOnce your offer is accepted, we\u2019ll also handle any further negotiations and coordinate all the paperwork and other details involved in your home purchase. The best part is, you\u2019ll have a knowledgeable, licensed advocate on your side who is watching out for your best interests every step of the way.\n<\/p>\n\n\n

\nHelping You Get to the Right Offer\n<\/strong><\/p>\n\n\n

In many cases, a competitive offer doesn\u2019t need to be all-cash, contingency-free, or significantly above asking price. But if you\u2019re serious about buying a home in today\u2019s market, it\u2019s important to consider what you can do to sweeten the deal.\nIf you\u2019re a buyer, we can help you compete in today\u2019s market without getting steamrolled. And if you\u2019re a seller, we can help you evaluate offers by taking all the relevant factors into account. Contact us today to schedule a free consultation.\n<\/p>\n\n\n

\nSources:\nNational Association of Realtors -\u2028https:\/\/www.nar.realtor\/newsroom\/pending-home-sales-dwindle-4-1-in-february\nNational Association of Realtors -\u2028https:\/\/www.nar.realtor\/newsroom\/existing-home-sales-fade-7-2-in-february\nForbes – \u2028https:\/\/www.forbes.com\/advisor\/mortgages\/housing-crisis-tips\/\nRealtor.com -\u2028https:\/\/www.realtor.com\/advice\/finance\/earnest-money-deposit-mistakes-buyers-make\/ \nBankrate -\u2028https:\/\/www.bankrate.com\/real-estate\/contingency-clause\/\nHome Buying Institute – \u2028http:\/\/www.homebuyinginstitute.com\/mortgage\/risks-of-waiving-a-contingency\/\nRealtor.com -\u2028https:\/\/www.realtor.com\/advice\/sell\/what-is-a-rent-back-agreement<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":291,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","pagelayer_contact_templates":[],"_pagelayer_content":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-monthly-newsletter"],"_links":{"self":[{"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/posts\/288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/comments?post=288"}],"version-history":[{"count":10,"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/posts\/288\/revisions"}],"predecessor-version":[{"id":299,"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/posts\/288\/revisions\/299"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/media\/291"}],"wp:attachment":[{"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/media?parent=288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/categories?post=288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thompson-baxter.com\/vantagerealty\/wp-json\/wp\/v2\/tags?post=288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}