Get Your Offer in Early
When a seller is facing dozens of offers, often the earlier offers will stand out. If you are interested in a house, have your real estate agent submit your offer as early as possible. A strong, early offer will appeal to a seller, especially if he or she is looking to sell the home quickly.
Pay with Cash
When the market is competitive, one major advantage is to purchase the home with cash. A cash offer is especially attractive because there is no worry of the loan not being underwritten.
Typically, to make a cash offer, you will need to prove you have the money on hand. The seller won’t have to worry about waiting for the money to come through because the funds are already there. Sellers will often accept a cash offer over an offer that depends on a mortgage loan being approved.
Make a Significant Down Payment When Making an Offer in a Seller’s Market
Most buyers are not financially able to offer cash on a purchase as significant as a home. To present a better offer, make a large down payment on the mortgage loan.
By paying a higher percentage towards the price of the home, you’ll need fewer funds for your mortgage. Typically, 20% is the standard down payment made on a home loan. Take a good look at your budget and determine if you can put more money down on a home.
Increase the Earnest Money
When you make an offer on a home, the earnest money is a deposit that shows your commitment to the purchase. If the sale doesn’t go through, the earnest money isn’t refunded; the seller keeps it. A buyer pays an average of 1 – 3 % of the price of the home in earnest money. Increase this amount to influence the seller to consider your offer over others.
Hire a Real Estate Agent if Making an Offer in a Seller’s Market
It’s a good idea to work with an experienced real estate agent when buying a home. Your agent will recommend other ways to help your offer stand out. He or she understands the local market and the urgency in drafting a solid offer quickly.