When it comes to making a strong offer on a house, cash is king. The good news is it doesn’t necessarily mean you have to be an investor with lots of cash already ready to go. As a homebuyer, you can come to the table with an offer that’s just as strong as the investors cash in the bank.
Competing with investors to buy a home used to be a challenge. As you learn in a minute, I’ve come up with a new system to help you put in a strong cash-like offer and make sellers want your offer more than an investor who’s willing to pay cash. There are three easy steps to success.
1. Put in Strong Offer
When making an offer on a house, you want consider what the seller and their realtor are looking for.
In most causes there are two factors; price and guarantee. When considering how much to offer for the house, it sometimes makes sense to offer a little more than the asking price to make your offer more attractive and beat out any investors. The second factor is guarantee. The seller wants to know you can actually close your loan on time, more on this in step 3.
2. Back Up Your Offer Quickly
When you and the seller come to an arrangement, it’s time to comfort the seller and it starts with your initial offer. Placing Earnest money in an escrow account signals to the seller you are serious and here to stay. As a rule of thumb, 2% of the total purchase price is usually adequate to show you are committed to your offer to buy the home.
3. My First Offer Acceptance Package
When it comes to buying a home the team behind you is just as important as the offer you make. Your realtor and loan officer have to have the experience and ability to help you win the seller over. Because I understand the importance of putting in a strong offer and backing it up, I’ve created the “First Offer Acceptance Package”.
This comprehensive package contains several documents needed to send a strong and clear message to the seller and realtors involved. These documents include a detailed loan Pre-approval letter, desktop underwriting approval, previous client and realtor testimonials on their experience in working with me and my team, along with my personal bio and contact information.
I then give the seller’s agent a call after sending the first offer acceptance package to answer their questions and inform them of your credit approval as well as your desire to purchase their clients home. This often results in getting your offer accepted in a multiple offer situation.
