The decision to buy a new house is a significant one, and you can spend a lot of time and energy trying to find the right home to purchase. After you have found your dream home, however, the last thing you may want is to have your offer denied by the seller. With this in mind, you may be wondering what it takes to structure a reasonable offer that the seller will accept. There are a few steps to follow that can help you to accomplish your goal of getting an offer accepted.
If you plan to use a home loan to pay for a portion of the property, an offer to purchase a property is stronger if it is accompanied by a pre-qualification letter. You can get pre-qualified for a mortgage through a lender, and the process typically only takes a few minutes to complete. Once you have a letter in your possession, you can hand it to your real estate agent to affix to the offer that he or she prepares on your behalf. Keep in mind that the sales contract will state whether you plan to pay with cash or if you are applying for a mortgage.
Decide On a Reasonable Asking Price
The next step is to work with your real estate agent to decide on a reasonable price. You may only have a limited budget that you are working with, and you may be inclined to submit a lower offer simply because you cannot afford to make a higher offer. While this strategy may be successful if the seller is getting desperate to sell the property, some sellers will immediately turn down a low ball offer. They likely know how much their property is worth, and they may be inclined to wait for a reasonable offer that is close to the asking price. In some cases, the comparable sales data may indicate that the asking price is too high. If this is the case, submitting an offer with comps to support it is reasonable.
Be Reasonable About Contingencies
All sales contracts have contingencies, such as those for the closing, the property inspection and more. For example, it is reasonable to allow ten days after the acceptance of the sales contract for the property inspection to be completed and 30 days for closing. This will vary by market, and some sellers may be more wary of accepting an offer with very long contingencies. On the other hand, some may not be ready to move out of the house for six or eight weeks, so a longer contingency may be preferred by some.
If you are structuring a sales offer, a smart idea is for your real estate agent to reach out to the seller’s real estate agent. This can provide you with additional information about what the seller is looking for in an offer. Through your efforts and with the help of your real estate agent, you may be able to structure a great deal that the seller will accept.