I served recently on a panel discussion by REALTORS at Chapman University at Orange CA on “Top Ways to Get Your Purchase Offer Accepted in this Seller’s Market”.
This discussion was interesting, and here is my outline of TOP WAYS TO GET YOUR PURCHASE OFFER ACCEPTED in this seller’s market.
1. PLAN AHEAD AND GET PREQUALIFIED FOR A HOME LOAN before start of your search. Make sure you have deposit money and down payment available and documentation to show that with the offer. Check your credit history report and debt to income ratio. Work with an experienced mortgage broker.
2. FIND OUT WHAT THE SELLERS WANT FIRST. Your Realtor can contact the listing agent and discuss other pending offers and whether sellers want a long escrow or to stay in the home after close of escrow.
3. BE KIND AND RESPECTFUL OF THE SELLERS. Tell sellers why you like this property, and don’t criticize the property or neighborhood.
4. BE AGGRESSIVE WITH YOUR OFFERING PRICE. Know that “Cash is king”. You want to look appealing as buyers and financially able to buy and close escrow – and to provide comfort to sellers that you are well-qualified for mortgage. So offer as much cash as part of price as possible. Sellers and their agents know about price and value. Example: If your comparative market value range is in range of $500k, your offer should be in that that range.
5. PRESENT A CLEAN OFFER. Agree to as buyers pay for your own non-recurring closing costs, and do not ask for sellers to pay for anything special. Buyers should agree to pay for their own property inspection. Sellers agree to pay for termite and wood inspection and section one remediation. Sellers and buyers should pay for their own escrow charges. Sellers should pay for an owners’ title policy. Buyers should pay for HOA transfer fees, and that sellers should pay for all HOA documents required by law. However, these terms are negotiable, and sellers usually like it when buyers agree to pay more of the costs.
6. EXPECT LOTS OF BUYER COMPETITION and consider presenting an OFFER TO BUY IN AS IS CONDITION with no request for repairs. Keep in mind that you as Buyers take the risk when they purchase a home in “as is” condition.
7. OFFER TO ALLOW SELLERS MORE TIME TO CLOSE ESCROW or to stay at the residence after close – if that’s what they will want.
8. LIMIT YOUR BUYER CONTINGENCIES or clear some if possible in your purchase offer. Example: If you are already pre-approved for a home loan, consider clearing this contingency in the offer. Buyer home inspections are very important, so this contingency should be retained and used.
9. BE QUICK TO BUY AND CLOSE if that’s what sellers want.
10. ADD A PERSONAL BUYER HUMAN TOUCH as part of the purchase offer. Write a letter directly to the sellers and have the presented with your offer. Inform truthfully about your need for this home. Tell about yourself as buyers, your employment, and family situation, and be transparent – while providing photo images showing you and your family.
BEST WISHES ON GETTING YOUR PURCHASE OFFER ACCEPTED IN THIS MARKET NOW FAVORING THE SELLERS.
Professional REALTOR® agent and broker representation – for property owners, sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.
Harrison K. Long, Realtor and broker associate – CADRE 01410855 – also an attorney member of the California State Bar Association #69137 – 949-701-2515 for direct telephone or text contact.