Here’s how to make your offer stand out in a multiple-offer situation.
Today we’ll discuss how to get an offer accepted. You need four things before writing your offer:
1. Have their contract.
2. Pre-approval letter. This is different from a pre-qualification letter.
3. Due diligence money. This should be about 3% to 5% of the purchase price. In multiple-offer situations, this can increase to 8% to 10% depending on how many buyers there are and how badly you want the house.
4. Earnest money check. Part of the down payment that can be any amount depending on other factors.
"If you forfeit repairs, you’ll pay for all the little things, but it will make your offer more attractive."
If you want the house badly enough and it’s in very good shape, you can forfeit all the repairs or put a cap on it so any repair over $6,000 needs to be discussed and you have the right to cancel the contract. Sellers never want to make repairs right before they move out, so if you forfeit repairs, you’ll pay for all the little things, but it will make your offer more attractive.
Make the offer subject to the appraisal so that if the difference between the appraisal and your offer is too high, you have a right to cancel the contract.
The buying agent should talk to the listing agent and find out what the seller’s situation is. Knowing if the seller needs to move out quickly, wants their money quickly, or if they're interested in a rent-back until maybe their new home is finished are critical things that can win an offer in this market.
If you have a question or topic, please contact us. If we pick your question, we’ll send you a $25 check. If you have any questions about today’s topic or real estate in general you’d like to discuss with us, let us know. We’re happy to help you. Have a great day.