Home sales continue to soar even as interest rates begin to rise because of the overall shortage of supply in comparison to the number of buyers. Finding the perfect home for you and your family can be frustrating because once you finally find the home of your dreams, you’re likely to find your offer competing with a handful of other potential buyers. Here are some strategies you can use to make your home buying offer look its best.
Put together a strong home buying offer with these ideas:
- Don’t get desperate. First of all, it’s essential to remain grounded. Even though a home may seem absolutely perfect, it’s not the last home you’ll fall in love with. Work with your realtor to create an offer that makes sense for you and your budget.
- Get pre-approved. Many people get the itch to shop for a home, but sellers pay more attention to those who are serious enough to get pre-approved and already know exactly how much they can afford to spend.
- Make an offer above the list price. There used to be a time when you negotiated down from the list price, but that is not the case this year. In most situations today, the list price serves as a suggested starting point for making offers. Your offer may need to be well above it. However, consult with your realtor and use good judgment, so your offer is consistent with market values, and you won’t be upside down when market conditions change.
- Put more cash down or make an all-cash offer. The more money you can put down, the more stable your offer will look to the seller. An all-cash offer is best because the seller will not need to deal with any stipulations from a mortgage lender.
- Use an escalation addendum. An escalation addendum says that if multiple parties submit offers, you will automatically go a specific dollar amount over the highest bid up to a maximum price. For example, if $450,000 is the highest bid, your escalation addendum might say you will automatically go $5,000 more ($455,000 in this case) up to a maximum of $470,000.
- Consider waiving contingencies. This is something you should only do with careful consultation between your realtor and your mortgage lender. Depending on the amount of cash down, you may be able to waive house inspections or just ask for a structural inspection to limit the number of repairs the seller will need to make. Keep in mind that this is at your own risk.
- Offer a higher amount for earnest money. Earnest money is a good faith deposit that you will follow through on an accepted contract to purchase the home. If you’re serious about buying the house, offering a significant amount of earnest money may make sense since it will be applied to your closing costs anyway.
- Be flexible with dates. Providing the seller with options may be valuable if you have flexibility with closing the contract or when you want the keys. For example, if the seller isn’t able to move out quickly, giving them more time or providing a rent-back agreement so they can remain in the house longer could make a significant difference in their decision.
Are you looking for a home in Southern Oregon?
The best place to begin your journey is with an experienced real estate agent like Gail Schoeneberg. Gail has extensive experience and knowledge, including marketing financing and buyer and seller representation in the Southern Oregon market. She will help you determine if buying a home is the right choice for you. And, of course, once you decide what you’re looking for, Gail will be at your side until you find the perfect new home for your family.
Contact Gail Schoeneberg today at 541-840-1909. Your new home awaits.
