How To Homeown

Getting an offer accepted is one of the highest highs in the entire home buying process! As a Realtor, the best part of my job is calling a client to tell them “we got it!!!!” There is so much that goes in to writing/submitting an offer and there is so much that happens between acceptance and the official closing, but getting your offer accepted is certainly a cause for celebration. 

There are several different scenarios when it comes to offers: sometimes you’re the solo offeror and you are tasked with finding the fine line between healthy negotiation and a fair offer package that will appeal to the seller. Other times you may be in a multiple offer situation where you have to craft the best offer package in the bunch in order to be the one offer the seller decides to work with out of the many they receive. In our market, for the past fourteen years, most properties were sold with multiple offers ranging from two offers to fifty-four offers (the record for most offers in our area, as far as I know) and anything in between. Whether there is one other offer you’re competing against or fifty-three, it is imperative that your offer stands out above the rest! 

I have spent the past eight years crafting the perfect approach to being the winning offer in every situation and I take great pride in being able to say to my clients, “if you want this house, I will get it for you” and actually being able to deliver on that 100% of the time! Here’s how:

Let’s start off by talking about what sellers and listing agents are looking for in their winning offer: because we represent an equal number of home sellers and buyers, we understand the psychology of a seller and are able to help our buyers present the best offer package based on knowing what it is that sellers really want/need. Ultimately, a seller is looking for the best overall OFFER PACKAGE vs just the highest price or the quickest closing. When making your offer, the number one question your Realtor should be asking the listing agent is, what is your seller looking for? Price will always be important to a seller, but there are other factors that you can work to your advantage, simply by knowing the sellers’ desired outcome. – Do the sellers need a quick close so that they have the cash to purchase their replacement property? – Do the sellers need a rent back so that they can have an agreed upon amount of time to remain in the property after its closed? – Do the sellers have any items they have excluded from the sale that can be spelled out for clarity? – Do the sellers need you to take on some repairs because they do not have the cash for them and can that be considered in the price?  – Is there a specific closing date that would work out well for the sellers, for example working around a mortgage payment being due or a scheduled cross-country move? While all of these things seem like “small stuff” in the scheme of things, working these out ahead of time can have a huge impact on a seller choosing your offer because you have demonstrated that you are going above and beyond to work well with them!

Another brownie point that you can earn in presenting your offer package is making sure it is clean and complete.  – Make sure that the names of all parties on the contract are spelled out fully and correctly.  – Make sure that there are no missing signatures, initials, dates or fill in boxes.  – Making sure that inclusions, exclusions, and repairs are clarified up front. Including any signed, necessary addendums or forms such as contingency removals or closing costs allocations.  When sellers and their agents are looking through offers, they appreciate professional presentation that does not miss anything or leave anything open for interpretation: there is nothing more annoying than a sloppy offer and it is sure to send even a well-priced offer to the bottom of the stack. 

If you have not read my advice on selecting a Realtor, this is a great read. When getting your offer accepted, who you’re working with makes a huge difference! Your Realtor is a part of your team and is the agent representing you: their ability, communication and reputation is a direct reflection of you. Listing agents will always advise their sellers on who they know will get the deal done, so aligning yourself with a good Realtor can make or break your chances in getting your offer accepted. In addition to your Realtor, your lender and their competence is hugely beneficial, too. The seller wants to feel confident that you are in good standing for your loan and that you/your mortgage person have a great rapport so that financing/appraisal will not be an issue in the successful close of this sale. 

It goes without saying that price is the first thing sellers look at. When determining your offer price, it is so important to take in to consideration why the seller priced the house the way they did, recent comparable sales (comps), up to date market conditions, amount of competition on the particular listing, and what the seller paid for the property/put in to the property over the years. When it comes to price, I always ask my clients this question… how badly do you want the house, thus what is it worth to you? Before you get too emotionally attached or worried about comps, what is the value of the house to you and does it fit in to your budget? This is really important when it comes to multiple offer situations because as a buyer, you never want to feel like you have overpaid for a house HOWEVER, you do not want to give up your dream home over a few thousand dollars or poorly written terms!

Here is the list of documents I recommend including with every offer: – An agent to agent Offer Summary Letter (your agent should write this) – Fully executed Purchase Agreement and all accompanying forms such as Agency Relationship and Buyer Disclosures/Advisories or Addendums  – Any other signed contractual forms that make sense up front, such as Contingency Removal or Buyer Inspection Waiver – Pre Approval letter including lender’s contact information  – Signed acknowledgement of receipt of all disclosures/reports provided ahead of time *major kudos if you sign all of the disclosures and reports ahead of time, however this can be very time consuming and taken care of later in most cases – Proof Of Funds for down payment and/or full cash to close if writing an all cash offer 

You’ve got this and if you don’t, we are always here to help!

Happy Offer Making!