It can take a great deal of time and effort to find that dream home or perfect investment property, but simply finding the property is only the first stage in a longer process.
Now you’ll need to present a strong offer to the seller. Superior properties that are priced right will usually interest a handful of prospective buyers, so you’ll need to make your offer stand out. It’s not always all about price, either; several other factors play a role in strengthening or weakening an offer. Here are some tips on how to make your offer stronger:
1. Have the earliest possible closing date.
Usually, sellers will favor an early date to a later closing date. An early date demonstrates to the seller that you mean business and that you’re ready to do business. A later closing date can often give problems and snags more opportunities to pop up.
2. Ask for a minimal-length option period.
A longer option period does not help your offer. When a prospective buyer backs out during the option period, the buyer has lost nothing, but the seller has lost other potential buyers. A shorter option period reassures the seller that your offer is serious.
3. Offer a larger amount as earnest money.
The precise amount can vary enormously. Earnest money is usually about 1% of the offer price, but in lively markets the earnest money deposit can sometimes be as high as 5%. A seller often measures your seriousness by the amount you put in an earnest money check.
4. Write the seller a personal letter.
Tell the seller why you like the property and how much you appreciate the work he or she has put into it. Most sellers will appreciate this personal touch and will be grateful that you’ve noticed their property-improvement efforts.
5. If you want the seller to complete any repairs, list those repairs after the inspection rather than on the first offer.
This will help both sides to avoid any disputes about the validity of the repair requests.
6. Don’t forget that it’s vital to send your offer with a pre-approval letter rather than sending it with a pre-qualification letter.
The pre-approval letter is key because the lender only issues it after a careful assessment of your financial situation. The pre-approval letter indicates an exact amount you have been pre-approved for, so it enhances your offer by assuring the seller that you are capable of purchasing the property.
Following these tips can help you save a lot of time and money when buying real estate in Sarasota. Contact an Exclusive Buyer Agent at True Sarasota Real Estate today to start writing that offer on your next Sarasota home.