When housing inventory is tight and you’ve finally found your dream home, bidding on the property can be stressful and intimidating. Thankfully, there are many ways to increase your chances of getting your offer accepted and successfully closing on your new home. Here are our best tips to make a strong offer whether you’re a first-time homebuyer or purchasing a vacation home.
Work with an Experienced Real Estate Agent
Real estate agents are valuable throughout your experience, as they have an in-depth understanding of the local housing market, pricing, and the home buying and selling processes.
They also play a significant role in getting your offer accepted, as the real estate agent is the one to make the offer and help you in negotiating the purchase terms. When you find a home that you love, don’t leave negotiations up to an amateur.
Get Pre-Approval From Your Lender
When you want to get your offer accepted, securing funding ahead of time and providing proof is a great way to speed up the process. Your lender can provide you with pre-approval paperwork that boosts your negotiating power. The seller won’t need to worry about funding holding up the purchasing process, and it will also show them that you’re serious about making a purchase.
Consider Using an Escalation Clause to Get Your Offer Accepted
Escalation clauses are a valuable tool in a competitive housing market. An escalation clause allows your offer to increase depending on offers from other parties up to a specific amount.
For example, if you place an offer of $250,000 on a home, you could include an escalation clause that allows your bid to increase up to $10,000 if competing offers are made. This can help keep you at the head of the pack even with others making similar offers.
Get Your Offer Accepted by Being as Flexible as Possible
When you’re getting ready to move out of your current home and into your new house, you should also consider that the seller is likely doing the same.
Being flexible, like allowing them to rent the home from you for a couple of months after closing or offering to close swiftly to get the home occupied as quickly as possible, can make a difference in getting your offer accepted.
Look for a Pre-Listing Inspection
If the seller has already had a pre-listing home inspection performed, you can elect to accept the results from that inspection and use them during negotiations.
This will speed up the process and give the seller the peace of mind that you will not suddenly request new repairs. However, if a pre-listing inspection has not been performed, a home inspection before finalizing the sale is essential to protect yourself.