How to Make a Strong Real Estate Offer

Real estate professionals know a good real estate offer when they see one. A good real estate offer is thorough, reflects the property’s value, and is not contingent on other offers that may fall through. And if the house you’re looking to buy is on the market, subject to change of ownership, and has several interested buyers, then it’s important to make a strong real estate offer—now, not later.

When it comes to real estate, there’s never a guarantee that you’ll win. Maybe someone else did a better job of making their offer stand out. But only you can ensure that your offer is strong enough to win. Read on to find out how to make a strong real estate offer.

Check your client’s preapproval and prequalified status.

Real estate is a people business. Knowing your client is paramount in a field full of highly intelligent professionals. Knowing them from the preapproval process to the actual offer allows you to make an informed offer. Preapproval or prequalified status is the process in which the lender gives you a commitment in writing that they will provide financing. It’s the first step in making a real estate offer.

Making the best offer

It’s probably the point of the real estate buying process that you are hoping to strike a good deal. This might be your first home, relocating to a new city, or buying a home as an investment property. No matter why you’re buying a house, making a strong offer is essential. When making an offer, there are several things to keep in mind. For example, many buyers focus primarily on the asking price. Still, when making an offer, you must consider the overall cost of the purchase, including closing cost, property taxes, and homeowner’s insurance.

Encourage clients to write a personal letter.

Encouraging your clients to write a personal letter is one of how to make a strong real estate offer. Writing a personal letter can weave your entire life story into words on a paper page. Let your clients know you are genuinely excited to help them achieve their dream of owning a home. Your personal letter will be a powerful way to communicate your excitement and reiterate your dedication to your client.

Being flexible with the closing date

We have ended our discussion about what to consider when negotiating a real estate offer for a home. As sellers, you want the buyer to fall in love with your home, and you want the highest offer possible. But the buyer is looking out for their own best interest, and they want to make an offer that works best for them. Buying a home can be a stressful experience. Not only are you making a huge investment, but there’s a lot of negotiating to do. That involves finding a good realtor and captivating the seller with an offer they cannot refuse. However, finalizing the closing date is one of the most important steps in the process, both in terms of your sanity and your marketability as a buyer.

Submit a clean offer

Real estate investors sometimes classify their offers as “clean” or “dirty.” A clean offer is your first offer to a seller and is an offer that includes all of the terms of your transaction. A dirty offer does not include a complete property description, preapproval letter, and earnest money amount. You can often tell if a seller is interested in your offer by how they respond to your approach. If interested in your offer, they will likely respond quickly with a counter-offer. On the other hand, if they are reluctant or simply unresponsive, it may be best to follow up with another offer.

Offer to help with closing costs.

There are many things a homebuyer can do to make a winning offer. While mortgage rates are historically low, they are expected to increase, so now is the time to make the offer. If you want to make an offer but want to present your offer strongly, consider asking the seller to pay closing costs. For a homebuyer, closing costs include lender’s fees, inspection costs, appraisal, title insurance, and prepaid interest. Closing cost assistance is not a requirement but may be negotiable.

 

Sometimes, you just got to say “yes” and go all out. And sometimes, you want to do everything you can to negotiate your way to the best possible deal. These situations often require learning how to make a strong real estate offer. The good news is, no matter if you’re making the offer, the buyer, or a seller, these three steps will help steer you in the right direction.

Leave a Reply

Your email address will not be published.