The absolute best way to get your offer stand out is to make a cash offer. This will make you irresistible to sellers. There are many reasons sellers love those offers. A big one is that there is less of a chance for the deal to fall through. With non-cash offers, many factors are involved. When many factors are involved, there are many things that can go wrong. When this happens, sellers lose the deal and have to re-list the house.
Buyers who are unable to pay cash have to get a mortgage. This is standard, as most people cannot afford to buy a house outright with cash. Be sure you check your credit before you begin going house shopping. You should do it months before, so you have an idea of the size mortgage you can get, as well as time to dispute any errors you might find on your credit report. It will also give you time to pay any current outstanding debt.
After, you should go get a pre-approval letter from the bank. This will show to the seller that the bank has verified your information and has determined that you can get a mortgage, and for what amount. This will make the seller take you seriously. You should make the absolute best offer that you are able to pay. Be sure to have your realtor evaluate the other homes in the area, and sale prices, among other factors. These numbers are what should give you a clear indication of what to offer. The problem with playing the back-and-forth lowball game with the seller is that there could be another buy simultaneously making their reasonable offer, instead of playing games.
Earnest Money is a deposit on a home that the seller keeps, and returns when the deal is done. This deposit is simply to show the seller that you really want to purchase the house, and can afford. The more money you put down, the better. The more money you put down, the more serious you appear. However, be cautious in this area, because there are ways sellers can get around returning the money. Only give a reasonable deposit, and that which you can afford.
Most sellers prefer offers without any contingencies. If you have enough cash, put together an “appraisal contingency,” by assuring sellers that if the appraisal comes in lower than the purchase price, you’ll pay the difference or split it with them. Include a home-inspection contingency, but tell sellers that you will cover the cost of any repairs. Express your willingness to work with the sellers’ timetable to go to closing. If they have purchased a new home, but cannot move out of their current home for another month, tell them you’ll let them stay. This would mean that you are offering them a “lease back,” which names you their temporary landlord. Try to bend with them a little to make both of your timeframes work.