In competitive homebuying situations, particularly in any “seller’s market,” a key factor for buyers will be making a strong home offer once they’ve landed on a home they desire. There’s a decent chance you won’t be the only buyer making an offer on the home, and finding ways to keep your offer competitive and help it stand out from others will go a long way.
At Daybreak Living, we’re here to provide numerous services to those looking to buy one of our homes for sale, from finding a home to providing financing and numerous other steps. While the most obvious way to improve or sweeten any home offer is to add money to it, this is not the only method available to you here. This two-part blog series will go over several ways to make your home offer stronger beyond simply increasing the number.
Strong Lender
One area that many sellers will consider heavily when comparing two similar offers on their home: The reputation of the lenders involved. Mortgage lenders pick up a reputation in their local area over time, one that’s known by our real estate agents and numerous others in the field – and when we’re working with a seller on their home, we’ll often provide our expertise on which offer is from the best lender.
For this reason, it’s vital to be careful about your lender selection. Speak to your buyer’s representative for recommendations about an ideal lender with a strong reputation in your area, from their ability to process mortgage applications quickly to their attention to detail and ability to meet important deadlines.
Loan Pre-Approval
If you have the option through your lender, getting pre-approved for your mortgage is an excellent move that will strengthen your buying position. This is different from pre-qualification, which is a less involved and official process – in some cases, you might be able to ask your lender to even move past pre-qualification and begin your underwriting process as you’re making an offer. The documentation of these moves will be excellent evidence to show the seller you’re serious about this offer.
Earnest Money Considerations
When we talk about earnest money in a homebuying situation, we’re referring to a good faith deposit made by the buyer in exchange for the seller taking the home off the market and negotiating exclusively with them. This money is usually applied to your closing costs if the deal is accepted, or sometimes your down payment – with this in mind, increasing your earnest money offer is a great way to improve the overall offer without actually raising the amount you’re offering on the home.
For more on how to improve your home offer to a seller without upping the price, or to learn about any of our house listings, real estate agents or other services, speak to the staff at Daybreak Living today.
Utah Dave - Daybreak Neighboorhood Expert and Local Resident