Making an offer is a thoughtful process that should be done with great care and consideration. To help, we’ve shared 8 helpful tips for getting your contract accepted.
- Get pre-approved. Getting preapproved by a lender before making an offer tells you how much buying power you truly have and helps pre-determine your bottom line.
- Offer earnest money. Earnest money is a deposit made from the buyer to the seller once the offer has been accepted and is typically kept in an escrow account. This ‘good-faith deposit’ shows the buyer’s commitment in selling the home and can be kept as cash or later applied towards the purchase of the home.
- Shorten inspection, or due diligence period. The due diligence period is the time between signing the contract and inspection of the property. During this time, the buyer still has the option to walk away from the sale. Shortening this period separates the serious buyers from those who are not so sure.
- Reduce or eliminate certain contingencies, such as inspections or move-in dates. This reduces common time-consuming obstacles to the home buying process.
- Include an escalation clause. Ideal for a multiple offer situation, an escalation clause states that your bid will automatically raise, if another buyer bids higher than you. This allows buyers to continually remain on top of the competition.
- Submit an offer letter. A personal note expressing an emotional connection to the home shows the seller that you are not just any other buyer – you genuinely care and would take great pride in owning their home. This also helps to provide buyers with a competitive edge.
- Make a clean offer. A clean offer is a simple offer. Meaning, it is easier to close. Clean offers refer to those that have short financing and appraisal contingencies, and a shortened due diligence period. Clean offers are essential when buyers find themselves in a competitive seller’s market.
- Present a strong (or best) offer price. If it is in your budget to do so, consider offering more than the asking price. This will set you apart from other buyers and provide you a competitive edge.
To learn more about making an offer and tips to getting your contract accepted, contact your local VanDyk Mortgage Loan Originator today!