Deciding to buy a home is a big financial and life changing move but it's one that is typically worthwhile over the long-term. Locking in your cost of housing, building equity, and having stability are all great things. But you might face a somewhat unfavorable situation. It could be buying in a seller's market or in a popular neighborhood where house are rarely listed for sale. Whatever the reason, you should know what sellers look for in a buyer's purchase offer.
What Sellers Look for in a Buyer's Purchase Offer
Before you enter the real estate market, take time to prepare. Because the majority of home purchases are financed, it's going to take some time to obtain pre-qualification and the all-important pre-approval. Also, time to save for a down payment, earnest money deposit, inspections, moving, closing costs, and miscellaneous expenses. You should order copies of all three credit reports from TransUnion, Experian, and Equifax (which you can do once a year for free through Annual Credit Report.com). Then, peruse each file for any errant information. Be sure to file disputes by U.S. Postal snail mail and skip the short, online forms.
Drafting a solid offer, or purchase contract, is like successfully cooking a new recipe. As a buyer, you want to pay the lowest possible amount for your new home, and have flexible terms for items such as earnest money deposits, mortgage commitments, and closing dates. As a seller, you want to get as much as you can for the property, with few contingencies and a quick timeline. --Home Finder
When your credit reports are in order, it's time to start shopping lenders to compare mortgage products and rates. Try to avoid adjustable rates, if at all possible. After you've done all your preparatory work, you'll probably begin your house hunt online. You'll likely see many homes in person and once you find the home with most of your needs and wish list items, you'll need to submit an offer to the seller. So, here's what sellers look for in a buyer's purchase offer:
- Official pre-approval. If you don't have the liquid assets to make a cash offer, one with a pre-approval is the next best thing. This is because pre-qualification is little more than a cursory check of your finances, credit, employment, and more. A pre-approval is a serious examination of your finances and more, providing you with an amount you're able to borrow.
- Sizeable earnest money. Some buyers skimp on saving for their good faith deposit and it only hurts them when it comes to the strength of their purchase offers. Have a sizeable earnest money deposit ready-to-go so the seller knows you're serious about buying the property.
- Flexible closing timeline. It's usually a good idea to give the seller some flexibility with the closing date. After all, most sellers will also be simultaneous buyers. At the very least, the seller is likely to be searching for a rental, if he or she isn't a property investor or heir selling a house.
- No far-reaching contingencies. While you'll occasionally see advice to waive all contingencies or most, this just entails too much risk. Instead, be reasonable with your contingencies, the seller will understand you're only covering necessary due diligence.
- A sincere, viable backup offer. If you learn an offer already exists with the seller, then submit a strong backup offer. Consult your buyer's agent about what to include, what to change, and what to omit. This gives you a chance to buy the home, if the other buyer backs out of the deal.
If you are in the market to buy a Copper Canyon Ranch home and want to make it a smooth process, give us a call at 623-206-9936. We’ll gladly assist you with finding one that best fits your wants and needs.