Everyone recognizes that this is a difficult housing market for homebuyers. With inventory shortages and low interest rates, buyers have seen a face-paced market with strong growth in home prices. As interest rates begin to rise, the pressure for buyers to settle on a new home and lock in their rate is even stronger.
With so many buyers vying for the same property, it's important to write the best offer right up front. Here are 5 tips to help you write a strong offer.
- Show Financial Strength - You already know you need a preapproval letter but ask your lender to include an explanation about how they qualified you, bank statements, tax records, underwriting review.
- Include a Proof of Funds Letter - Ask your lender to include a letter which indicates they have checked funds needed for the close.
- Larger Deposit - Earnest money is deposited into escrow and is applied to the buyer's costs at the close. If you are serious about the home, offer a larger deposit that shows you have 'skin in the game.'
- Limit Contingencies - Real estate contracts have a lot of standard contingencies. Working with your agent, discuss them each in detail and remove any that aren't necessary or don't add extra protection.
- Be Flexible - Make it easy on the seller. Offer a flexible closing date or leaseback option if they need more time. Consider offering a contingency to the seller that allows them to find their new home.
Remember that even in this fast-paced real estate market, buyers are finding new homes. With a little strategy, you can find the right home for you and your needs.
