In the current market, buyers with a bit of bargaining power have an edge when negotiating the terms of their offer. If you’re buying a home right now, you’ll no doubt be on the lookout for properties that give you an opportunity to negotiate. However, sellers are still in the driver’s seat and can choose to accept or reject any offer they choose. There are a few things that home buyers can do to increase the chances of their offer being accepted by the seller. Here are some tips on how you can have a better chance of getting your offer accepted as a homeowner.
Increase your Earnest Money Deposit (EMD) before submitting an offer
Before you even submit an offer, you can increase your chances of getting your offer accepted by increasing your earnest money deposit. Your earnest money deposit is a cash deposit that acts as security for the seller and shows that you are serious about buying the house. The amount of your EMD is negotiable, but it’s important to remember that you will have to come up with the funds upfront. When you submit your offer, your offer is only valid if the seller agrees to your terms and the terms of your contract. Your EMD is just one factor that a seller can use to determine whether or not they want to accept your offer. Let’s say that you submit an offer that includes an EMD of $5,000, but the seller’s agent has advised their client to only accept offers with a $10,000 EMD. In this scenario, the seller will likely reject your offer regardless of how great it is.
Increase your bidding price
While you can increase your EMD to increase your chances of getting your offer accepted, you can also try to increase your bidding price. The strategy here is simple: if you submit an offer for a property for $10,000 above the asking price, the seller may be more inclined to accept your offer. Keep in mind that your offer will likely come with conditions, like providing proof of funds and meeting the seller in a specific time frame. A seller may be more likely to accept your offer if they feel you are a serious buyer and not someone who just wants to “poke around” at the property. With that being said, sellers often approach real estate with an “all or nothing” mentality. If you want to increase your chances of getting your offer accepted, try to submit an offer that is $5,000 or more above the asking price.
Leverage your agent
As part of the process of buying a home, you’ll need to hire a real estate agent. A good real estate agent will help you find a home that meets your needs and will negotiate the price on your behalf. If you find a house that you like and you want to submit an offer, it’s a good idea to discuss it with your agent first. Your agent might be able to suggest improvements that will help you get the seller to accept your offer. Real estate agents are skilled negotiators and are more familiar with the seller’s needs than you are. They’ll be able to advise you on how you can make the seller more likely to accept your offer. The seller may accept your offer or they may come back with a counter-offer. If they come back with a counter-offer, your agent will be able to help you determine whether or not the new terms are acceptable.
If you’re like most buyers, you’ll want to negotiate some contingencies into your real estate contract. Contingencies are clauses in your contract that allow you to cancel the purchase or renegotiate the terms of the contract if something goes wrong. There are a few common contingencies in real estate contracts, but you should have your real estate attorney review your contract and suggest contingencies that are appropriate for your situation. A common contingency is a home inspection contingency. This is a clause that allows you to cancel the contract if the home inspector uncovers serious defects with the house. A second contingency that you should consider is a financing contingency. This clause allows you to cancel the contract if you are unable to secure a mortgage loan that is within the terms of your contract.
Include a letter with your offer
Another way to increase your chances of getting your offer accepted is to include a letter with your offer. The letter should be short and sweet, but it should also be succinct and confident. A letter from you to the seller can help the seller understand why you love the house and why you’re the best buyer for the property. Your letter should be written from a place of love and admiration. Let the seller know that you appreciate the house and that you’re a serious buyer. A letter can make a difference in a seller’s decision-making process and can go a long way towards getting your offer accepted.
Boost your deposit
If you want to increase your chances of your offer being accepted by the seller, another option is to increase your EMD. As mentioned previously, your EMD is one factor that a seller can use to determine whether or not they want to accept your offer. If you increase your EMD, you are making it more difficult for the seller to say no to your offer. When deciding how much to increase your EMD, you should consider your current financial situation, your credit history, and the current real estate market. You should also consider how much the seller is likely to ask for the EMD. If you have a bad credit history, it’s possible that the seller will ask for a larger EMD.
Negotiate the price first
If you want to increase your chances of getting your offer accepted by the seller, negotiate the price of the house before negotiating the terms of your contract. By negotiating the price first, you’ll be able to avoid any potential price disagreements later on and you’ll be able to focus on the terms of your contract. The best way to negotiate the price of a property is by making a low-ball offer. A low-ball offer is an offer that is significantly less than the asking price. In some cases, the seller may accept your low-ball offer because they are eager to sell the house. Alternatively, they might come back with a counter-offer that is closer to the price that they want. In any case, you’ll have a better chance of getting your offer accepted if you negotiate the price first.
Wave some contingencies if you feel comfortable doing so
If you’re in a highly competitive real estate market, you may want to consider waiving a few of your contract contingencies to make your offer more appealing to the seller. As long as you feel comfortable doing so and you’re confident that you can close on the house, you can waive your inspection and financing contingencies. Remember that the seller wants to sell their property, and they may be willing to accept a lower offer if the terms of the contract are more appealing to them. If you’re confident that you can close on the house, you can waive your inspection and financing contingencies to make your offer more appealing.
Buying a home is a big decision, and it can be nerve-wracking, especially in a competitive market. If you want to increase your chances of getting your offer accepted, there are a few things that you should keep in mind. First, make sure that your offer is attractive to the seller. Second, be prepared to negotiate on the terms of your contract. And third, be prepared to increase your EMD if necessary. When sellers are presented with multiple offers, they have an opportunity to select the buyer they feel most comfortable with. When making an offer on a house, you’ll want to make yourself stand out as the best choice