Use These 5 Tips in Your Buying Strategy to Close on Your Dream Home
You are about to make a major financial investment and a life-changing decision by purchasing a home. Once you’ve found that perfect home, approach the offer-making stage of the process with a sound strategy, and find yourself closing the deal with confidence. Understanding the market is what our real estate agents do best, and we’re here to help you find your ideal property and share the following insights into making a sound and successful offer to purchase.
- Do Your Homework
It’s advisable to know as much as you can about the home you intend to buy before you put your initial offer on the table. A Comparative Market Analysis or CMA will give you an in-depth look at the home’s value in relation to comparable properties in the area. The CMA is a valuable tool, as it considers not only homes that are currently on the market, but also properties that have recently sold as well as those with pending sales. Having the home inspected is important not only to validate the value it holds but to also identify any potential repairs that should be considered when making an offer.
- Have Your Documents In Order
Knowing what you can afford is a must, and for many prospective home buyers, the best way to firm up your budget is to obtain a pre-approval from your lending institution. Once you have that, you’ll want to present this verification on paper to the seller along with your initial offer. Bank statements, proof of income and funds availability for down payment, and an official underwriting approval are other documents you should have ready to submit as well. Letting the seller know that you are able to back up your offer goes a long way in the negotiation process.
- Think Your Decision Through, But Don’t Hesitate Too Long
Time is of the essence when making an offer on a home, especially when that home is the one you’ve got your heart set on now. If you’ve prepared yourself with a pre-approval and researched the home well, you’re ready to make your move. There’s no guarantee that someone else won’t beat you to the punch and submit an unbeatable offer. Get your offer out there quickly to ensure that it’s seen and seriously considered.
- Get The Seller’s Attention
Letting the seller know you mean business begins with an offer that says you’re ready to buy. A low ball offer will probably send a message to the seller that you aren’t a serious buyer and may even take you out of contention without further consideration. Give the seller a respectable and realistic offer that you both can live with while leaving yourself a little room for flexibility in case of a bidding war with other potential buyers or a counteroffer from the seller.
- The Power Of Personal Connection
The seller may have an emotional connection to the home they’re selling, and believe it or not, may be more willing to deal with someone who recognizes that attachment and is willing to express their own connection to the property. A cover letter sent along with your offer can be used to express why you love the home and how you envision your future life there. Often this simple yet personal touch may put your offer in a much better position for consideration and acceptance, giving the seller the assurance that their home will be as special for you as it is for them.