Tuesday, October 6, 2015 / by Tom Nickley
Once you find the house that you love, it is imperative that you write a strong offer. Our goal is not only to put you in the best possible position to secure that home for you and your family, but to also get you the best deal possible on that home. Although each transaction is different, there are a few things you can do in any transaction to make your offer as strong as possible.
First of all, you need a strong pre-approval from a local lender. This will give the seller confidence that you have the financing in place to actually be able to purchase the home. Also, having the pre-approval gives you comfort, because you will know exactly what you can afford.
Secondly, focus on the terms of the offer. There are many different terms, but there are a few that we focus on when putting together a strong offer. Obviously, the purchase price is crucial. Right now in Orlando, homes are selling for 97% of asking price.
As far as terms go, we also look at the earnest money deposit, which is the good faith deposit you make once your offer is accepted. This money comes out of your down payment, and typically you only need to put down 1% or 2% for earnest money. However, if you're going up against multiple offers, you may want to increase the earnest money.
Another term to pay attention to is the closing date. If a seller is sitting with two almost identical offers and one has a 60-day closing period and the other has a 30-day closing period, the seller will almost always choose the offer with the 30-day closing period.
The final term that can strengthen your offer is the inspection period. Usually a 10 day inspection period is best for the buyer and the seller. You have time to do your due diligence and negotiate with the seller, and the seller has time to figure out any repairs they need to make to the home.
Finally, we always recommend writing a good, old-fashioned seller letter. This is your one and only real chance to make an emotional connection with the seller. Simply tell the seller why you fell in love with the home, and why you see your family living in that home. Writing to the seller will really separate you from any other offers on the property.
If you have any questions at all, or if you're considering buying or selling a home, please do not hesitate to reach out to us. We would be happy to help you!