Making an Offer Today: You’re ready to write an offer on the home of your dreams. Your agent has gathered all the information that you need to write a reasonable offer. They’ve pulled up comparables and created a CMA for you that shows you side-by-side comparisons of similar homes currently for sale or recently closed. You’ll be able to accurately judge size, condition, updates, and other variables to arrive at an offer price that you can afford and that the seller will accept.
Your offer should be clear on the price, terms, dates, and contingencies that you want the seller to meet.
Think Like the Seller
Now it’s time to think like the seller. Introduce yourself in a letter, so the seller knows who you are, what your goals are, and why you want this particular home. If your offer includes a contingency that may inconvenience the seller, be sure to mention why that is necessary for you. If you’re relocating and need an early closing date, or have a home to sell, explain your position in the letter, but point out that you are prepared to compensate the seller with a high or full-price offer.
The offer should be accompanied by a copy of the mortgage company’s pre-approval letter, along with a cover letter summarizing your strengths as a buyer in terms of creditworthiness, ability to close, and the strength of your offer. If you’re offering less to the seller than they’re asking, you may need to explain your position by adding your agent’s CMA to the offer so they know how you arrived at what you feel is a fair offer price. If you’re in a hot market, be prepared to compete with other buyers. You may even find yourself in a multiple offer situation. If so, craft your offer to be the most appealing to the seller. Your real estate professional will advise you to make your best offer first. Do not assume you’ll get a chance to rewrite your offer if it’s rejected. The seller has the liberty of ignoring any offer and choosing only the best offer to negotiate.
Keep Your Own Goals Firmly In Mind
Believe it or not, the buyer offering the highest price doesn’t always buy the home. Terms such as possession dates may be a determining factor. A seller who needs to sell but must wait until the end of the school year to move may be grateful for a lease-back clause that allows them to stay a longer while in the home after closing. The best way to position yourself as the buyer whose offer is accepted is to work closely with your agent. He or she can offer valuable input when it comes to making an offer and negotiating price and terms. Don’t lose sight of your own goals.
