After months of looking for your dream home, you finally found it! You want to put in an offer but are thinking about submitting it for a price $10,000 under the asking price in an attempt to get the best deal possible. Should you do it and risk upsetting the seller or is it worth the shot? Let’s look at the art of submitting low offers and how to sweeten it a bit!
Being flexible is an important part of submitting any offer but especially submitting a low one. Let the seller choose a settlement date and be open to the date they pick. If the seller chooses to sell quickly so they can move into their new home sooner or is they need a little more time to settle on another home, be open to it. This could be the difference between your offer of an open settlement date and someone who wants to settle this month.
Deposit High to Purchase Low
When making a low offer, think about making your “Earnest Money Deposit” higher than the customer one to three percent. This will show the buyer you are serious about the home. Sellers typically keep this deposit after closing and it can make them feel better about them selling their property. If the seller backs out of the sale, your money will be refunded. If not the money is accounted with the other portion of your deposit to the lender.
By having an inspector inspect the property sooner than the average timeframe, you will show the seller you are ready and serious about the property. The average inspection timeframe is between 15-20 days after contract acceptance. But most deals that fall through are because of the inspection results. Hiring an inspector sooner will give the seller the knowledge that the deal is solid and won’t fall through.
If you feel the seller has concerns about the offer, cover yourself. Submit some documents to make your offer stand out. Reach out to the lender and ask if the seller’s representative can call them to talk about the situation. Also submitting a bank statement will show you have the funds ready for settlement and you are ready to go. Another way to communicate your readiness is to submit a strong pre-approval letter from the lender stating you have been approved for the funds needed to purchase the house. Remember that a pre-qualification letter is not the same as a pre-approval letter.
Submitting an offer below asking is definitely taking a risk as it could scare the seller off from any future offers. But it is also a great way to get a home at a price you feel comfortable paying and can be used to negotiate. By being open minded, you will be in your forever home in no time! For more information on submitting an offer or to start looking for your forever home, call Simply Referable today!
Simply Referable Can Help You Find Your Dream Home!
The small team of realtors at Simply Referable is deeply focused on creating a memorable selling experience for you and your family. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.