Buying a home can present many challenges, especially when the market is so competitive. As the home inventory becomes more limited, you might compete with other buyers to secure that “just right” property. This is when knowing how to draft an offer comes in handy. Sellers often want offers that give a straightforward path to selling their house with few complications or obstacles. Knowing how to make a winning offer can give you an edge. Here are some key tips to help you get started.
Ensure the Price is Right
The price is the first thing that sellers check out, so carefully consider how much you offer. Based on how fast homes are selling in your specific neighborhoods, you should set your price at or slightly above the listing price to draw the seller’s attention.
If you bid below the list price, be clear about your reasons. Otherwise, you may acquire homes for sale in Westlake Village that are not within your budget.
Show Proof of Pre-Qualification
Obtaining a mortgage pre-qualification implies the lender has performed a background check of your finances and pre-qualified you for a loan. In a seller’s market, this mortgage pre-qualification shows sellers that you are serious about closing in on their property.
If you are yet to obtain this pre-qualification letter, consider checking that off your list. Besides helping you have your offer accepted, this pre-qualification also helps you determine what you can afford to purchase.
Offer More Earnest Money
Earnest money is generally a good-faith deposit towards a home purchase. The average earnest money deposit is 1-3% of the listing price. However, you can raise it to 5% or higher in a hot market to gain an edge over your competition.
Sellers will opt for a buyer ready to offer thousands in earnerst money than one who wants to offer hundreds. However, check if this deposit is refundable before making the offer.
Waive Some Contingencies
Contingencies are provisions you include in a home offer to establish specific requirements for the purchase. For instance, you can include a clause that the home purchase is contingent on a home inspection or appraisal.
These contingencies are often standard, but waving them in a hot housing market can help you lure the seller. Talk to Westlake Village CA real estate experts The Arledge Group to learn what contingencies to waive, as this approach might sometimes be risky. For instance, if you waive the home inspection contingency and then later encounter huge defects in the home that need repair or renovation, you might incur huge unforeseen expenses.
Be Agreeable to the Seller’s Needs
Learning about the seller and their motivation for selling can help you figure out how to draft an enticing home offer. For instance, if you know the seller will not relocate for another 3 months, you could agree to schedule the closing date on a timeframe that works for them. You could also agree to expedite the closing if they need to move fast.
However, ensure it will not cause problems before you agree to such conditions. If you are trying to sell your current residence or still renting, your timeline may not be flexible.
Partner with Arledge Group to Explore Westlake Village Real estate
Making an offer is not something to do casually. In a hot market like Westlake Village real estate, you must find a trusted realtor for professional assistance. The Arledge Group boasts over 50 years of combined experience in the Westlake Village housing market. You can trust them to guide you on how to buy a home in Westlake Village, helping with everything from navigating bidding wars to handling negotiations. Set up a consultation to get started today!
