Making An Offer The Owner Can Not Refuse

When you are in a hot real estate market it's important for Buyers to make an offer the owner can't refuse. Some Sellers are receiving multiple offers, so, the best offer wins. Consider these three tips to make yours the winning offer.

First, consider the closing date. Try to determine the Seller's preferred closing date and include it in your offer. Don't make the mistake of thinking every Seller wants a quick closing. Sometimes a longer closing date is preferred. Have your Realtor try to find out the Seller's motivation and preference. Most Sellers are willing to tell you their preferred closing date. If at all possible, include it in your offer.

Next, consider removing the financing contingency. Most offers include a financing contingency that means the Buyer would receive their deposit back if the financing didn't go through. Removing this contingency will make your offer much stronger. If you are certain that you will have no difficulty obtaining financing, this strategy is a good one. The worst-case scenario is that your deposit would be forfeited if you don't close the sale

If you are not in a position to remove the financing contingency, the next best strategy would be to get pre-approved by your lender. Don't confuse pre-approval with being pre-qualified. Pre-approval means you have completed the application process and have received an approval letter from your lender. This makes you a strong Buyer.

Finally, the best way to make an offer the owner can't refuse is to offer more than the list price. Keep in mind that in a hot market it is not unusual for homes to sell at or above the list price. If you know that you are competing with another Buyer, offering $100 to $1,000 above the list price may make yours the winning offer.

Should you worry about paying too much? Obviously, you don't want to pay too much. Your Realtor can help you determine if this is a good move or not. However, if a home is generating multiple offers, it's probably priced correctly and deserves serious consideration.

One more thought, having a seasoned Realtor on your side might make the difference between failure and success. Are you working with an agent who closes only a few transactions per year? Or, are you working with an agent who closes 100 or more transactions per year? The more experienced agent will no doubt have a wealth of advice and tips like these to help you achieve your goal.