How a Lower Offer Can Still Get the House
The Reno Real Estate market is recovering at an amazing pace, you’re likely competing with other buyers for your dream house, all you need to do is ensure that your offer is the highest, right? Although most people would think that, in a situation like this, the party who offers the most money will get the house, this is often not the case. Being personable and helping to ensure a smooth transaction can go a long way.
A high offer definitely helps your cause, but the total dollar amount is just one part of a complete offer package. Your real estate agent can advise you on the different ways to make your offer more attractive, but here are a few ideas to get you started.
Cash is King!
Those who can pay cash for a home have a clear advantage over everyone else. Although it may seem like an impossible feat to pay cash for such a big item, approximately two out of every five homes sold are all-cash deals.
Cash gives you the leverage over higher-dollar offers every time. With all-cash deals, no lenders or mortgages need to be involved, escrow closes considerably faster and there is no appraisal required.
The Power of Preapproval
A preapproval letter can also go a long way when competing with other buyers. This letter serves as confirmation that you can secure the financing required to buy the given home. It means that your lender is ready to move forward as soon as the offer is accepted.
The preapproval letter is similar to a cash offer, and since mortgages are harder to get these days, it can give you a significant advantage. Other buyers may make higher offers, but without preapproval, they don’t have much to back-up their numbers./p>
Closing Period Flexibility
The length of the closing period is a very important factor to most sellers. In most cases, this period lasts between 30 and 90 days. An offer with a closing period that meets the needs of the seller may get the deal done over a higher offer with a concrete closing period.
In most cases, sellers want fast closings (30 days), so it can be a big advantage to have all your paperwork and lending set to close fast. However, some sellers are dealing with extenuating circumstances. For example, the seller may need to wait for their new home to be completed, or they could need extra time to prepare for an international move. It is very important to find out how much time they need and to match that timeframe in your offer.
The Cheesy Personal Letter
The thought of writing a personal letter begging the sellers to choose you can seem pointless. However, believe it or not, this small gesture can be quite influential. While writing a heartfelt letter may not guarantee you the deal on its own, not writing one can be the reason your offer gets thrown out. The personal letter is a standard in some markets, so at the very least, you should talk with your real estate agent to make sure it is not expected.
Your realtor can help you find many other ways to make your offer more attractive, other than simply increasing the amount. Your offer doesn’t need to be like all the others. In fact, the more you can customize it to the seller’s needs, the more likely you are to get the house!
If you're looking to sell your home or looking to buy a home, Contact Reno Sparks Tahoe Homes today!! We're here to help you with accurate local information and strong knowledge of our real estate market from all MLS Listings and New Construction