This article is for our buyers who are navigating this seller’s market. Let’s go over the components of a good offer so that you set yourself up for success when it comes time to buy your dream home!
As homes are selling quickly – some in less than a day – sellers usually receive multiple offers before accepting one. We want to help our buyers present the best possible offer right off the bat so you have a better chance of getting the home that you want.
The first key part of a strong offer sounds obvious, but it’s so important: price. Many buyers are hesitant to offer full or above asking price, but with the current market conditions doing so will present a much stronger offer. Keep in mind that an extra few thousand dollars can make a huge difference for the seller. And it most likely translates to just a few extra dollars on your monthly mortgage, depending on how much extra you offer.
Another key to making a strong offer is to ensure you don’t have too many contingencies in your contract. We understand that it’s challenging in this market to try to buy a home when you’re also trying to sell your current home. However, sometimes sellers don’t want to wait for you to sell your home before selling theirs. If there is any way you can drop a few contingencies, your offer will be much more enticing.
Additionally, the sellers may have a specific closing date in mind that works best for them. If possible, try to be flexible and work with their schedule. Have your broker find out when the sellers would like to close and see if you can make that work.
Finally, another great way to present a solid offer is to increase your earnest money. This is the deposit that you put down within the first 24 hours of the sellers accepting your offer. The sellers want to know upfront how much money you’ll be putting down. Most people put down the minimum of 1%, so if you can do a little bit more that could sway them to choose your offer over another.
It can be difficult to be a buyer in a seller’s market, but our team is here to help you meet your real estate goals.
Feel free to contact us at (217) 422-3335
Want to learn more? Take a look at What to Expect When Buying a Home or 6 Reasons to List Your Home with a Real Estate Broker