Six strategies to help you craft a competitive offer letter.
As a homebuyer, what can you do to increase your chances of getting your offer accepted in this changing market? Here are my six tips to help you craft a winning offer:
1. Understand the closing costs when making an offer. Due to rising rates, dropping prices, and longer days on market, buyers need assistance. Ask for closing costs, but make the offer for more than asking—this is especially important with VA loans.
2. Ask the seller to buy a point. Rates are going up so fast that the seller might be willing to offer to buy a point if you give them a full-price offer. You can use the same strategy to make the offer for over asking and have the seller buy down a point.
3. Put down more earnest money. Putting down 20% will show the seller you’re serious about buying that home.
4. Go conventional or cash. With these two options, you can alleviate most of the headaches for a seller and avoid many pitfalls that cause deals to fall apart.
5. Delayed financing or a bridge loan. With a bridge loan, you can sell your home quickly as though you were a cash buyer. That will make everything much smoother because you won’t have to deal with the bank.
6. Love letter. Include a letter with your offer that lets them know why you’re buying. Tell them how many houses you’ve looked at and why you fell in love with theirs. Appealing to the seller’s emotions can be a very effective strategy.
If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.
