Have you found real estate that you're ready to buy, but other people are making offers at the same time? If so, you'll need to make an offer that stands out from everyone else to make the sellers pick you. Here are some tips for making an offer that will be accepted.
Write An Introductory Letter
One way that you can appeal to the seller is to write a letter to them explaining why you want the property. You may be surprised at how effective this can be, but when there are two similar offers on the table, the seller may decide to pick someone that appeals to their emotions. For example, you can tell them about how you are trying to move into the area so that your kids can go to a good school district, or how you are looking to start a family and feel like their home will be perfect for it.
Perform A Comparative Market Analysis
Many people are not sure if they should make an offer at the asking price or go above it when there are multiple offers on the table. The best way to determine what the house is worth is to have your real estate agent perform a comparative market analysis. This is when you find homes that have recently sold in the area that are similar, and then look at the price they sold at. This can give you a good idea about whether the home is undervalued and you should actually be coming in with an offer that is much higher.
Use An Escalation Clause
If you really love the house and don't want to lose it, then consider putting in an escalation clause rather than a firm offer. This states you are willing to pay a specific amount more than the highest offer on the home to ensure that you have the top bid. The seller will show you what the top bid is and how much your offer would be, and you'd move forward with signing a contract if it was acceptable.
Submit Your Pre-Approval Letter
Sellers want to pick a buyer that will be able to secure financing, or else they'll be wasting time with a sale that falls through. It will help to submit your pre-approval letter from your lender that will prove how much money you are capable of getting for a mortgage. This can give the seller peace of mind that you're a safe choice for selling their home.