Everyone recognizes that this is a difficult housing market for homebuyers. With inventory shortages and low-interest rates, buyers have seen a face-paced market with strong growth in home prices. As interest rates begin to rise, the pressure for buyers to settle on a new home and lock in their rate is even stronger.
With so many buyers vying for the same property, it’s important to write the best offer right upfront. Here are 5 tips to help you write a strong offer.
- Show Financial Strength – You already know you need a preapproval letter but ask your lender to include an explanation about how they qualified you, bank statements, tax records, underwriting review.
- Include a Proof of Funds Letter – Ask your lender to include a letter which indicates they have checked funds needed for the close.
- Larger Deposit – Earnest money is deposited into escrow and is applied to the buyer’s costs at the close. If you are serious about the home, offer a larger deposit that shows you have “skin in the game.”
- Limit Contingencies – Real estate contracts have a lot of standard contingencies. Working with your agent, discuss them each in detail and remove any that aren’t necessary or don’t add extra protection.
- Be Flexible – Make it easy on the seller. Offer a flexible closing date or leaseback option if they need more time. Consider offering a contingency to the seller that allows them to find their new home.
Remember that even in this fast-paced real estate market, buyers are finding new homes. With a little strategy, you can find the right home for you and your needs.