Crafting a Stronger Offer in a Multiple-Offer Situation
How can you make your offer on a home stronger to compete and possibly win in a multiple-offer situation? Answering that question is my aim in today’s message.
As a homebuyer, there are quite a few ways you can add further incentive for the seller when crafting your offer.
One such way is to increase your deposit amount. The traditional buyer may only offer $1,000, so if you’re willing and able to offer 3%, 5%, or even 10% more in your deposit, it’ll strengthen your offer and the seller is more apt to consider it.
Second, be sure that the home inspections you have performed are for informational purposes only. This demonstrates to the seller that you’re a serious buyer and you have every intention of purchasing their property.
Although this isn’t without risk, your third option is to waive your mortgage contingency. I’d advise you to consult your loan officer before electing to go this route to ensure that you’re 100% approved for that particular property. Otherwise, you’re at risk of defaulting your deposit should the closing not come to fruition, which can pose a major problem if you put a larger deposit down.
Another great option is to add an escalation clause to your offer. This contractual clause serves to increase, or escalate, your offer in increments of either $500 or $1,000 above the highest offer the seller ends up receiving. The seller will be required to show you that offer, but this is a great way to gain a competitive edge over all other buyers who are eyeing a hot property.
One thing you’ll want to always remember: When you’re sending in your offer on a property, make sure that both your loan approval and pre-approval letter are property-specific and the exact amount you’re offering is disclosed. Crafting a clearly stated, error-free offer will send a message to the seller that your offer is the strongest.
If you have any questions that you’d like me to answer, please feel free to reach out to me by phone at 401-288-3600 or by email at [email protected] I’d be happy to answer them for you!