When you are in pursuit of your dream home, finances always take priority If planned correctly, you may have a minimum and maximum offer in mind. However, your perception of value may differ as compared to the owner, thus your offer can get rejected. While this can be a very depleting feeling, there are tactics that you can use to suggest a persuasive offer.
It is important to understand the market. This will influence how much wiggle room you may have between yourself and the owner. Understanding the market plays a pivotal role when there is a property that has received multiple offers. What makes your money ‘better’ than the next potential buyer?
Here are some things you should consider to make your offers attractive:
1. Get a Pre-Approval for your Mortgage
Many buyers do not understand the value of getting pre-approved without having a house to buy. Pre-approval makes you extremely competitive when a house has multiple interested buyers. This allows buyers to put in an immediate offer as soon as they have discovered the home of their dreams. In the absence of pre-approval, you will experience a prolonged process. This will include alerting the owner/agent of your interest, trying to get pre-approved quickly and then submitting your offer letter. Your letter will be received later as compared to other potential buyers. Local sellers prefer buyers who provide lender approvals as it assures them that the buyer can pay.
2. Understanding the Seller’s Needs and Your Own
A real estate agent will help you understand what can affect your offer and how to calculate the best-proposed figure. However, it is still important for you to consider all the factors, such as the external market environment before you finalize your offer. You want to keep both the interest of the seller and yourself in mind. Consider how long the house has been on the market, how quickly the owner wants the property sold, what are the reasons for the sale as well as the location of the property and its proximity to amenities.
3. Negotiating the Price and Terms of Sale
It is also important to leave room for negotiation. A seller will respond in 3 ways: acceptance, counteroffer or rejection. There isn’t much you can do when an offer is rejected, however, there are ways to navigate an acceptance and a counteroffer:
Acceptance: Great! Your offer has been accepted. But now what? The first thing to do is to produce the earnest money deposit (a deposit made to the seller from the buyer that acts as an assurance that they will buy the home) and sign the sales contract. After this, you can then move forward with the other aspects of buying a home such as moving forward with the mortgage lender, getting a home inspection done etc.
Counteroffer: In this case, the seller has come back with a counteroffer and you have to make the next move. Most buyers have their real estate agent start discussions with the seller to get an idea of their desired price and gauge whether they are willing to negotiate. Despite this phase being mostly informal conversation, it is often where the basis of the purchase is built. A real estate agent is particularly beneficial in this stage as they have the expertise to assist you in negotiating other factors that aren't just financial. They can assist with crafting an effective offer letter and identifying the seller's pain points, as well as trying to find a solution that works for both parties.
These are just some tips you can make your offer for a house stand out. If you need more tips, advice or want to see some listings in Trinidad and Tobago you can follow us on Facebook @ Anthobella Real Estate.
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