How to Write a Killer Real Estate Offer

Making an offer on a home is typically your chance to make a good first impression on the seller. It isn't in your best interest to throw out a random number and cross your fingers. Instead, the purpose behind the offer you put out should be a clear statement that proves you know what is fair, competitive, and likely to result in a successful transaction moving forward.How to Write a Killer Real Estate Offer

Continue to read to find 8 helpful tips for writing a good offer on your dream house in Las Vegas, NV.

8. Make Sure You Have Solid Approval from a Lender

Obtaining an approval letter from a mortgage lender should be the first step you take in the home-buying process. A seller will want to know that their buyers are approved to feel better about the chances of trouble or termination later into the transaction not occurring. We always recommend reaching out to and working with a Mortgage Advisor to have your approval in hand before you start shopping for your dream home in Las Vegas, NV.

7. Act Fast

A "normal" real estate market typically has a 6-month supply of homes listed for sale. In other words, if there are no new homes that come on the market, the current amount of available homes for sale would last around 6 months. Spring is the best time to sell a home as the market is overflowing with potential buyers who move quickly and often pay more than the asking price. If you should find yourself in a seller's market, you will have to act fast. Mainly, both you and your real estate agent have to work together to write a solid offer as soon as you find the home you want.

6. Show Your Competitive Side, but Be Reasonable on Price

When a seller receives an offer, the first important thing that will be looked at is the price. If the offer is too low, the risk of insulting the seller is present. In a competitive market, you will likely eliminate yourself from the consideration pool by submitting an offer that is too low. However, this doesn't necessarily mean that your offer has to be way above the listing price. Your offer should be competitive, based on an analysis of the current market. Your real estate agent should be able to help provide you with recent comparable sales in the neighborhood to determine the average price for the area.

5. Write Your Offer

Once you have set your mind to a price, your agent should draw up a written offer, known as a purchase agreement, and submit it to the seller's agent. A written offer is taken more seriously than a verbal one. The offer will include the terms and conditions of the transaction. Your offer should include the information you are approved and your mortgage lender's contact information. Typically, you will add a copy of an approval letter that your mortgage lender writes up for you. Though this information isn't typically required in the offer, it can strengthen the offer by proving you're well-prepared and serious about the transaction.

4. Write a Letter to Accompany Your Offer

It is important to recall even though this is a business transaction, the sellers are human beings. Consider writing a carefully thought-out letter to accompany your offer, where you can tell the seller a bit about you—whether this information is just about you, or yourself and your family. You can outline specific features of the house or location that stand out to you. Though none of this is required, it may be the extra step that catches the seller's attention to get your offer considered over a competitor's.

3. Consider a Higher Downpayment

Mortgages are available with low to no downpayment. Sellers will be more intrigued to see a higher downpayment. A typical downpayment ranges between 3-20%, depending on the market you are in. If the market is competitive, offers will have a higher downpayment versus those that are lower. A higher downpayment is seen as more reliable as there is less risk of the deal falling through due to financing. If you have the funds available for a larger downpayment, your offer can be pulled to the top of the stack.

2. Consider Limiting Your Contingencies

When you are in a competitive market, another way to make your offer stand out amongst all the rest is to consider limiting the contingencies in your offer. Contingencies include a home inspection, sewer scope, radon testing, financing contingencies, etc. Many of these listed factors are for your protection, and there can be extra contingencies that might not be necessary. Examine your financial situation and the risks involved before you remove a contingency. Offers with fewer contingencies are considered to be more favorable.

1. Consider Your Negotiations

In a competitive market, it is quite common for the seller to counter your offer. This might look like asking for a higher purchase price, a different closing date, or negotiating the seller credit toward closing costs. When this occurs, the seller's agent can submit a counteroffer to your agent, who will list out desired changes. You may then have the chance to accept, decline, or re-counter their offer. Each time changes are made, both the buyer and seller will have the option to accept, reject, or counter once again. Once all parties agree, the agreement will be documented and signed by both parties.

Bottom Line

Regardless of how many homes you have bought, having a good real estate agent on your side working with you is a critical part of writing a successful offer. As an expert in the Las Vegas real estate market, then your process will start on a smooth note.

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