Lorraine Ryall
Our housing market is still going strong, with fewer active listings over the same time last year, and more pending sales.
With fewer homes for buyers to choose from, and more buyers ready to purchase, we have started to see our market change from a buyer’s market to a seller’s market, and have already seen the multiple offers situation again in some areas.
In a seller’s market, competition can get fierce, and it’s important for the buyer to present the best offer they can right up front.
If you are getting ready to purchase a home, here are just a few options you can use to improve your offer and make it more attractive to the seller.
Keep Your Offer Clean—If you don’t have to, don’t ask for closing costs. Don’t ask for the seller to pay for a home warranty or for the HOA transfer fee. Don’t ask for the fridge, washer, dryer or other personal items, which are not included in the sale of the home.
Have a Fully Completed Prequalification Form from Your Lender—With just a phone call, you can get a prequalification from your lender in order to submit an offer. This is great if you are in a crunch and need one quickly in order to submit an offer. It can hurt you, though, if there are multiple offers.
There are a number of boxes on the prequal asking the lender how much information they have received. For example, it asks if the lender has received the buyer’s paystubs, tax returns, proof of down payment, etc.
If these boxes are marked No, this tells the seller the prequal is based on limited information the lender has received. If all these boxes are marked Yes, the seller knows the buyer is well qualified, and the lender has received all the required documentation. This will make it a stronger offer.
The seller will look at all the offers, and will accept the highest and best. Note the fact it’s not just the highest offer, but also the best offer. Your offer may be $1,000 higher than the next, but, if your prequalification has most boxes marked No, and the other offer has all their boxes marked Yes, the other offer is a stronger offer. Therefore, the seller may choose that over the higher price.
Earnest Deposit—Typically, the earnest deposit in Arizona is around 1 percent. By offering a higher earnest deposit, you are showing the seller you are a serious buyer and willing to put more skin in the game.
Buying As Is—This is a big one for the seller. After an offer has been accepted, there is the inspection period, when the buyer can ask the seller to make repairs to the home. We see too often where this stage of the buying process can make or break a deal, or it certainly can cause a lot of headaches. Sellers hate to know they will have to negotiate or come out of pocket for repairs based on what the buyer requests.
If you are in a multiple offer situation, and you really want the home, and feel comfortable enough that you are willing to pay for repairs yourself, writing the offer As Is will certainly entice the seller to accept yours over others. Just because you are buying As Is doesn’t mean you lose any of your rights during the inspection period. It just means you are willing to accept the property As Is, and will not ask the seller to do any repairs.
You still get the 10 days to do all your inspections. If any major repairs are needed or anything more than what you are willing to accept is found during the inspections, you can cancel the contract, and get a full refund of your earnest deposit.
Make It Personal—I am always surprised when I receive an offer from an agent via email without a phone call first or any information about the buyer. Write a cover letter to the seller to be submitted with your offer.
Let the seller know a little about you, that you are a strong and serious buyer, how much you love their home, and why it’s the perfect home for you and your family. Sellers like to hear how someone else loves their home like they do. It adds a human touch, and makes it more personal rather than just pieces of paper.
If you are thinking of buying a home and want to present the best offer possible, or would like more information, please contact me. We can discuss all the options available to you.
Lorraine Ryall is a Multi-Million Dollar producer and a recipient of the Coldwell Banker International President’s Circle Award. For more information, call (602) 571-6799, or visit her website at www.Homes2SellAZ.com.