The time is here, you’re ready to put in an offer on your dream house. Unfortunately, it’s not as easy as just offering the asking price. With record growth, we’re still in a seller’s market (when there are more people looking to buy homes than there are homes for sale).
So, what can you do to get the house you want? Here are 4 tips to help give you the edge when putting in an offer on your dream home.
Offer Above-Asking
In a seller’s market you can’t offer less than the asking price and expect to get accepted. You will have to make your offer strong enough to beat out a multiple-bid situation. If you want the house, you’re likely going to have to go above the asking price.
Making an offer above the asking price won’t end up costing you much in the long run. What you put down and what you pay monthly on your mortgage will only change significantly if you offer an amount far above asking. Keeping your offer aligned to the home’s value, while still above the asking price, will help you secure the home you’re interested in.
Make a Clean Offer
A clean, no-contingency offer means that you’re waiving all contingencies in order to make your bid more competitive and appealing to the seller. A clean offer should not be contingent on the sale of another property or have other financial constraints. It should also be free of seller concessions, which are requests that a buyer asks for outside of the offer price, such as help with closing costs. When a seller is receiving a ton of bids, choosing to make a clean offer can help you beat out other offers.
Add an “AS-IS” Contingency
One of the biggest stresses a seller can have is the home inspection, it can lead to buyers requesting certain repairs before buying the home. If you clarify home inspection in your offer as “for informational purposes only” it is an AS-IS offer (but you as the buyer determine your opinion of as-is). The key is having reasonable expectations and not pressuring the seller to invest money in repairs.
Offer One Month of the Mortgage
When purchasing a home with a mortgage, your payment isn’t due until a month after your closing date. Why not offer your payment early to sweeten the deal? A seller could benefit from you paying “rent” for a month, and this may strengthen your offer. Be sure to iron out these details clearly and get them in writing to avoid having house guests longer than expected.