It’s still a sellers market and inventory is at an all time low. Today I’m going to share with you 5 things that will make your offer stand out against other offers!1). 20% Down (Try to
5 THINGS THAT WILL MAKE YOUR OFFER STAND OUT TO A SELLER!
Dated: June 20 2021
It’s still a sellers market and inventory is at an all time low. Today I’m going to share with you 5 things that will make your offer stand out against other offers!
1). 20% Down (Try to put down as much as possible)
This is number one because the down payment is very important! This indicates that the buyer is financially capable, and the sale is more secure and less likely to “fall through.” 20% down means that the down payment is 20% of the principal, for example on a $500,000 house 20% would be $100,000. The 100,000 would be the down payment, and the remaining $400,000 would be provided through a loan.
2). Earnest Money ( The more the better!)
The earnest money is usually about 1% of the principal. It shows the seller how serious you are, and how much you really desire the home. The earnest money is deposited 3 business days after the offer is accepted, and is subtracted from the amount of the downpayment. For example; If the earnest money is $5,000 or one percent, try to offer $10,000 for your earnest money deposit instead.
3). Shorter Inspection Period
In Oregon the inspection period lasts 10 business days. If you can get your inspector to come out the next day, and you can get your reports back the same night, try to shorten the inspection period to maybe 5-7 days. Now keep in mind the inspection period includes getting the inspections needed, getting the reports back, deciding on what repairs are needed, getting the repair addendum finished, negotiate/and agree on repairs and/or what credit will be given. If this can be done I would advise it because it makes the process go by a little faster.
4). Rent Back
Rent back means that after the date of closing you allow the seller extra time to move out ether charging rent or just letting them stay for free. (My recommendation is that you give it to them for free). Check with your lender to see how many days after close they will allow you to grant the sellers to occupy the home, Then call the listing agent and ask how much time they might need, if they need any. (In this market, it is “rough” for the buyers, but it is also rough if you are a seller trying to buy because not only do you need to sell your home you have to buy one as well).
5). Escalation Clause
What is an escalation clause? Well that is a great question. Not everyone knows about this trick but it just might “seal the deal.” An Escalation clause is where you have a starting price (usually the asking price) and then you agree to beat any offer by a certain amount up to the max amount you are willing to go up to. Example: start price $500,000, you agree to beat the highest offer by $1,000 up to $525,000. So if somebody offers $506,000 your price would be $507,000. Please have your agent call the listing agent and see if they accept escalation clauses before you write one in your offer.
Thanks again for visiting! There was a lot of information provided here and it may have gotten a bit confusing. If you have any questions about anything that was said please feel free to contact me! Nothing on this list is mandatory, but one of these tips may help your offer stand out against other offers!
Good Luck, and happy house hunting!
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