Want to make an offer on a home, but worried about the owner rejecting it for someone else that has a similar offer? If so, it will help to know these tips to make your offer as appealing as possible.
Write A Letter About Yourself
Sometimes it helps to appeal to the seller's emotional side when making an offer. It is worth taking the time to write a letter explaining why you want to purchase the home. After all, you will be taking over the home that the seller has lived in for quite some time, so it gives you an opportunity to win them over with your story. For example, you may want to share how you are hoping that you can buy the home to start a family, or to compliment them on the things that you love about it.
Use An Escalation Clause
If you know that there are other offers on the home, you can use an escalation clause to avoid overpaying. Rather than list a specific dollar amount for the home, you will tell the seller that you are willing to make an offer that is a specific dollar amount over the best offer they receive.
For example, if you are making an offer on a home that is listed for $250,000, you can make an offer that you would be willing to pay $3,000 over the highest offer. It's a dollar amount that is appropriate for the sales prices of the home, since it's not too much that you feel like you are overpaying, but not low enough where it is insulting. Your real estate agent can help you determine the right dollar amount to offer in an escalation clause.
Include Your Mortgage Pre-Approval
Do you already have your pre-approval letter from your mortgage lender? It's worth including that letter in the offer letter to let your seller know that you have someone that is willing to lend you the money. Many offers on homes end up falling through due to financing not being approved, so having the pre-approval from your lender can ease the seller's mind that the sale will go through. However, see if your mortgage lender can draft an offer letter that is for the approximate value of what the home is being sold for. You don't want the seller to think that you are approved for a loan that is much higher than what they are asking for.
For more information, contact companies like Whitson Realty.Share