When it comes to owning your very own dream piece of real estate, it all begins with a strong offer. In the “good old days”, a homebuyer could usually make an offer under asking price, demand that they fix anything wrong with it, and cruise into closing day. Unfortunately for you (the homebuyer), this is no longer the case.
Today’s real estate market demands quick action, pre-approval letters of funding, and a strong offer. So what makes one offer better than another?
To start, cash is king. If you’re in a position where you have a heaping mound of cash just laying around and feel like buying a house, you’re in a great position to have the strongest offer on just about any house you fancy. All things equal, when there are multiple offers on the table and they’re all pretty strong, nine times out of ten the cash offer (or mostly cash) will win the house.
If you’re not in the cash-only category, don’t worry. All-cash offers are not always the best and strongest offers. When you do decide to put an offer on a house, make sure you have a letter of pre-approval ready to provide upon request. This will show the seller that you are financially responsible enough to handle home ownership.
Last but certainly not least, do your homework. By the time you settle on a dollar amount, your offer should have taken into consideration a few things: recently sold comparables in the neighborhood, timeline for closing (i.e. do they need 30 days or 90 to move out?), and your best estimate on the appraisal value of the home, just to name a few. Show the seller that you took the time and consideration to learn about their home in order to put together the strongest and most practical offer possible and they will usually see that a knowledgeable offer is the best offer.