You’ve found your dream home – now you need to win it – or at least win the right to purchase it. In today’s market, sellers clearly have the advantage, and often, have many offers to choose from. So how do you get your offer to stand out? And more importantly, if a bidding war ensues, how do you win it? How do you walk away as the new owner of your dream home?
The first step is to write a cover letter to the seller with your offer. For tips on writing a winning cover letter, check out this post. A cover letter will help you stand out, and often, be the difference between you and other potential buyers who do not have one.
If the seller does not accept your first offer, and your agent tells you that there are other buyers interested (and bidding), then congratulations, you’ve entered a bidding war.
Now what?
- Make sure your offer is at least the full price of the home, and depending on your available funds, more than the listing price if you can swing it.
- Offer to pay the seller’s closing costs.
- Make sure you’re pre-approved – sellers view potential buyers who are pre-approved more seriously than those who are not.
- Provide a purchase agreement with earnest money – this, like the pre-approval, let’s the seller know how serious you are about purchasing the home.
- Provide a written contract about the appraisal and any inspections – the contract should include things that you are willing to overlook should they arise. Sellers may be fearful about potential buyers nit-picking items that may arise during the appraisal or inspections, a contract helps to put the seller’s mind at ease.