Whether you are in the market for a new home, or you are a veteran real estate investor, there are 3 important tips for accepting an offer on your home. A clean, straightforward offer will be the easiest to accept and close. Clean offers usually have a short appraisal or financing contingency, and will not require you to sell your house or pay any closing costs. However, if you are in a highly competitive housing market, you may have to take risks to get the house you want.
Offer a higher earnest money deposit to show the seller you are serious
In order to demonstrate your seriousness about an offer on a home, you may want to offer a higher earnest money deposit than the market average. An earnest deposit is a portion of the purchase price that protects the seller in case the contract falls through. The amount of the deposit may vary, but it should be between 1% and 3% of the selling price. Your real estate agent can help you determine the amount of earnest money you need to make.
In a competitive real estate market, offering a higher earnest money deposit will help you stand out from competing buyers. However, it’s important not to undercut a competing buyer’s deposit because you could end up losing to a stronger offer. You can also opt not to pay earnest money if the market is slow or moderate. While earning money deposit may be a requirement in certain situations, it is not necessary if you’re not selling your home.
Write a personal letter to the seller to make an offer stand out
The first step in writing a letter to the seller is to develop a connection with the house. Most home owners have specific things they love about the house, so you should use this opportunity to highlight those traits in your letter. By building rapport with the seller, you can also make your offer stand out. Here are some tips to help you get started. Using a positive tone will go a long way.
First, be polite. When writing the letter to the seller, use friendly language. Avoid sounding overly desperate. You should express your gratitude to the seller, and end the letter with a sincere “thank you.”
Include an escalation clause in your offer
An escalation clause in an offer is an agreement between the buyer and seller that increases the bid price incrementally over time. It can be tied to a financing contingency or the final price. While an escalation clause can help you win over the seller, it will not guarantee that your offer will be accepted. Nonetheless, it can give you an advantage over the other offers.
While it can be tempting to raise the price to win a home, it’s not a good idea in most cases. An escalation clause may backfire and increase the price of the home, thereby driving you out of the deal. Therefore, it’s wise to think carefully before accepting an escalation clause. You’ll want to discuss whether the escalation clause is appropriate.
Click here to learn more about cash home buyers ames tx