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5 STEPS TO A ROCK SOLID OFFER- WHAT YOU NEED TO KNOW!

In the current competitive real estate market, it is easy to get frustrated with multiple offers on properties we would like to purchase. Here are some important things to know before making your offer. The agent for the seller is going to not only look at the amount of your offer, but also it’s strength. By strength, as yourself, “Have I done everything possible to make my offer more competitive and appealing than all others?” The seller wants no risk going under contract with a buyer. Time is money and if they pull the house off the market once its under contract, they want to be sure that the process will flow with as little turbulence as possible. Here are 5 things that will make your offer as appealing as possible:

1. Purchase and Sales Agreement:
– Offer price- either full price or above asking is almost always necessary in a multiple offer situation
– The amount of earnest money you will submit and who will hold it
– Closing and possession dates- is your time line aligned with the seller’s timeline?
– Customary Seller Fees- Another way to strengthen your offer is to pay for fees that would normally be paid for by the seller. This includes but is not limited to: HOA transfer fees, Title transfer fees and insurance fees. Less money out of pocket for the seller is going to make you stand out from the rest.

2. Comparables:
– Pull comparables to support your offer. Submit at least 3 comps for houses that are currently on the market or have sold within the last year (at the most) that are using the same price range as your offer and are very similar to the property you are trying to purchase. The purpose of submitting comps with your offer is to show that you are not “low balling” the seller but are giving them a fair price for their offer.
– A good agent will pull comps that are valid enough to use as negotiating leverage in the buying process. The DiVito Dream Makers are rock stars at this.

4. Pre-Approval: There are three levels of pre-approval which will determine how competitive your offer is. Remember though, CASH IS KING. A cash offer will almost always win out.

Level 1. Pre-Qualification: No loan or underwriting approval-WEAK
Level 2. Pre-Approval: Bank has approved your loan but nothing has gone to underwriting for approval: MODERATE
Level 3. Underwriting approval: Loan has been approved and gone through underwriting process. All that is left is to add property under contract: STRONG

5. Closing: Keep in mind the time you need to close. Most sellers prefer a quick closing over a 45 to 60 day close. If you can close in 30 days or less and have proof of solid funding lined up, yours will almost always be the preferred offer.

The end goal is to buy the property, so do everything you can to make your offer stand out from the rest. When going into such an important purchase as your home and many times your largest asset, you want to have as much confidence as you can. Follow these simple rules and use a dynamite team like the DiVito Dream Makers who have over 75 years of combined real estate experience. You can be SURE your offer will be as competitive as possible!