How to Make a Successful Offer
When it’s time to finally make that offer on a home, it can be a little exciting. In fact, very exciting because you’re about to own that home you found and want it to be yours. But you’re also not assured the sellers will accept your offer. That’s part of the excitement. You want to offer the lowest price possible but you also don’t want to make an offer that’s too low and the sellers reject your offer and take someone else’s. There’s a balance there that must be met. After all, the sellers want the very opposite of what you want. Instead of accepting the lowest offer, sellers want the most they can get. In all likelihood they’re going to use most of those funds to buy their next home. Where is that fine line where you get the home you want at the price you want?
First, there’s no guarantee. Your real estate agent can help craft your offer based upon previous home sales in the area but ultimately it’s up to you on how much to put on your sales contract. One of the key elements when writing a successful offer is to use your head and not your heart. That means taking into consideration all the facts, previous sales and your bank account and avoid “falling in love” with a home and offering more than what you might otherwise offer. This can be difficult sometimes, especially those who have been searching for a while and have had their offers turned down and are anxious to just get the deal done. Don’t let your emotions get the best of you.
Your successful offer will also include a copy of your preapproval letter. Note, this isn’t a prequalification letter, it’s a preapproval letter. A prequalification simply means you’ve had a conversation with a loan officer and based upon that conversation you can qualify for the amount needed to buy your home. But sellers in today’s market know the difference between a prequal and a preapproval and if they don’t their agent will tell them. A preapproval letter means that not only have you spoken with a loan officer but you’ve submitted an application, provided copies of your pay check stubs and bank statements and your credit report and credit scores have been reviewed. In short, all you need is a property address and an accepted offer.
Sellers who see a preapproval letter can be confident the potential buyers are not only serious but they can close quickly as their basic loan documents have already been submitted and reviewed by the mortgage company. The successful offer will include an amount the buyers are comfortable with but with a preapproval letter, even if the amount is lower than a competing bid, it can often get the nod if the competing bid only has a prequalification letter.