Buying your first home is exciting! You have so much to dream about and plan, but before you do, it’s time to get serious about the purchase. If you want the seller to accept your bid, it’s important to think like the seller.
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We know, why would you want to think like a seller when you are
buying a home? It helps give you a little insight into what the seller may want. When you take this extra step, it could help you get the winning bid on the home of your dreams.
How Can You Up the Ante?
You want your offer to stand apart from others. This could mean doing something as simple as letting them take the window treatments that they were going to live behind but you can tell they really love. It could be something as elaborate as giving the family time to rent the property back from you after the purchase closes. Maybe their home won’t be ready or they would really like to finish out the school year where they are now.
These are the little things that you can offer that may make the seller take your offer, even if it’s not the highest offer. It lets the seller know that you care, giving the transaction a personal touch.
Watch Your Contingencies
If you were a seller, what contingencies would you want a buyer to have when signing a purchase contract with you? Obviously, in a perfect world, no contingencies would be amazing, but that probably won’t happen.
If you have to have some contingencies, keep only the absolutely vital ones. For example, the
financing contingency is normal. Borrowers don’t want to commit to a home if they can’t secure the financing. That’s probably not a contingency that a seller would balk at.
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On the other hand, if you have so many contingencies that the seller can’t keep track, you may lose the bid. For example, the inspection contingency is a normal one, but it’s not always necessary. If the seller is pretty flexible, he/she may allow an inspector to come through the property before they even accept your bid. This way you know what you are getting into and don’t have to use any contingencies.
Don’t Ask for Concessions
The seller is selling a piece of their family’s history. While it’s emotional, it’s also a financial decision. The seller is likely out to make a profit. If you ask for too many concessions, it eats into the seller’s profits and leaves them with less money than they anticipated.
Seller concessions often come into play when a buyer can’t afford the down payment and the closing costs. You can avoid this scenario by paying close attention to your
Loan Estimate that the lender gives you when you apply or a loan. Determine if you can afford the closing costs and the downpayment at that time. If you can’t, you may want to ask the lender about lowering the closing costs in exchange for a higher rate or asking friends/family for gift funds to help you pay those costs.
Offer Full Price
Of course, the one thing that will make just about any seller jump is an offer for the full asking price. While it may not be what you wanted to do because you would rather get some type of ‘deal’ on the home, it’s worth it in the end.
The seller will walk away with the profit they were hoping for and you get the home you wanted. Of course, you shouldn’t offer full price unless you are sure you can qualify for the mortgage and can afford the down payment.
If you are trying to buy your first home in a seller’s market, meaning there are a lot of buyers, it’s important for you to think like a seller. Put yourself in their shoes for a minute and think about what you would want in an offer. This could be one of the best ways to make sure you win the bid on the home you want.
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