Jun
14

Make Your Offer Irresistible

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You’ve found it, THE PERFECT apartment.  You want it; it’s going to be yours.  Or is it?  Here’s a few tips to increase your chances of being able to sign on the dotted line.

  • Pay cash.  Sellers love all cash offers because they are less likely to fall through at the last minute.  If you need a mortgage, a low appraisal could sink your chances, and cause you to lose your deposit.
  • Get pre-approved.  If you have to get a mortgage, make sure everything is up to snuff with your credit.  Get the letter from the lender saying you’re pre-approved.  While it doesn’t guarantee you’ll get the loan, it shows that the lender has verified your income and credit score and determined that you can afford the payments on a mortgage at a certain amount.
  • Make your best offer.  In today’s market you may only have one shot, so make it your best offer.
  • Up the ante.  Add an escalator clause, with which you agree to increase your offer is there is a higher bid from another buyer.  Remember, if you agree to pay more than the market value (appraisal), you’re on the hook for the difference, whether or not the mortgage will cover it.
  • Increase your earnest money.  This shows how serious you are.  If you back out of the contract for any reason allowed in the contract or state law, you could get your money back.
  • Pay for extras yourself.  Offer to pay some of the closing costs or other prepaid costs.
  • Make contingencies easy to handle.  Sellers usually prefer no contingencies, but buyers need the protection contingencies provide if they need to cancel the contract.  Use your pre-approval and strong earnest money deposit to take the sting out of a financing contingency.  Seek the advice of your broker to help you determine what will help.
  • Write a letter to the seller.  This will help you connect with the sellers.  Make points like “We especially love…” and “We appreciate…”
  • Work with the seller’s timetable.  Express your willingness to go to closing on the seller’s schedule.

Inspired by Chicago Tribune article

 

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