4 Tips for Making a Successful Offer When Buying a Home in Rhode Island
Buying a home can be a frustrating process. These 4 tips for making a successful offer when buying a home in Rhode Island will help homebuyers put their best foot forward and increase their chances of getting their offer accepted.
Determine Your Price
The first thing a seller is looking at when you submit your offer is how much you’re willing to pay for the house. This is the most important factor in your offer for most sellers. Determining the reasonable fair market value for the location of the home you want is an important part of ensuring you are making a competitive offer. Your agent can help you understand what the market conditions are saying. How quickly houses are selling, how many buyers are active in the market, and how close home sales prices are relative to the list price are all things to consider before making your offer.
The goal is to buy the house at a price that works for you, but you also have to determine how much the house is worth to you. If it’s a seller’s market, and there is a lot of competition from other buyers in the market, you may want to consider offering more if you are comfortable going above the list price financially.
Of course, it is imperative that you have a mortgage pre-approval to show you have the ability to make good on the terms you are proposing at the price range you are offering. The pre-approval process will provide the opportunity to chat with a lender about what your monthly payment will look like at certain price ranges under certain terms. If you are not sure about how comfortable you are to make an offer above a certain price point, but you found a house you love and it is reasonably priced in that higher price range, call your lender and ask them to tell you what your monthly payment would be under the terms you intend to offer.
Doing your homework on price lets you make a comfortable offer with confidence, and that will present well within the context of the price the neighborhood supports. You can’t make sure the seller is reasonable, but you can make sure your offer is.
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Submit An Offer That Is Easy To Accept
Your agent will help you present your offer in ways that stand out. Every situation is different, and your options will be dictated by your position, but there are things you can do to make your offer more appealing to a seller vs. your competition. Of course the obvious ones are offering a solid deposit of 5% of the purchase price or more, putting down a larger percentage than your financing requires, not asking the seller to pay for the buyer’s closing costs and offering the price the seller is asking for the house. However, there are things your agent can do that might be a little more subtle and less obvious.
For instance, if the seller is living in the house and still looking for suitable housing to buy, an offer with flexibility in closing date and offering a suitable housing contingency to the seller might be more attractive than one from a buyer that needs to close in a short time frame. If the property is vacant and the seller has already relocated, a quick closing date might be more attractive. If the house has some deferred maintenance which you are comfortable taking on after closing, you may consider waiving your home inspections or make your offer as-is and indicate inspections are for informational purposes only and there is no expectation for the seller to make repairs.
If it is a very competitive situation and you are willing to offer more than list price on a property, it may be a good strategy to use an escalator clause to offer terms and a starting price with an offer to escalate your offer to $1000 more than the next highest competitor up to a maximum purchase price amount. Your Realtor will have many ways to get creative depending on your interest in a particular property and your ability to work with certain terms and conditions.
If the terms are easy for the seller to accept, your offer has a better chance to catch the seller’s eye. Also, it is helpful if the offer is on a purchase and sales agreement.
The seller may counter your offer with changes to the price or terms. Be willing to be flexible where you can to get the parts of the deal that are most important to you. If the seller is willing to come down significantly off of their price in exchange for terms that are comfortable for them and that you can work with, don’t assume that you have to ask for something because you’re giving something up.
You want to buy the house for a fair price and under terms you can work with. If the seller needs a little extra time or wants a larger down payment, or wants to limit total repairs to a certain amount, and it gets the deal done for the house you want, don’t hold out for the sake of trying to get more.
Search Newest Homes for Sale in Rhode Island
Be ready to move quickly when opportunities arise. A day can cost you the perfect home. This is another reason to have your preapproval ready before you start looking at houses. You will need to have your preapproval in place to make an offer. Having one ahead of time means you’re ready to go if you find the right house.
Make sure you’re getting notifications when new searches meet your criteria and you’re checking them at least daily. When you see something that you think might be the one, make sure you tell your agent right away that you want to see the house and you may want to make an offer. Make sure you have all available disclosures from the seller and sign and present them with your offer along with your preapproval letter.
If the house meets your criteria for the amenities you need in your preferred location at a price you can afford, do not wait to see what might happen. Get in to see it asap and be ready to submit an offer that day.
The highest dollar amount to the seller is usually going to take it, but there are definitely things you can do to make your offer stand out. Our team has the expertise to help you get your offer accepted when buying a home in Rhode Island.
Whether you’re buying your first home or your fifth, you need a real estate pro on your side to make sure the process goes smoothly – especially when making your offer. DM me to learn how I can help you through the entire homebuying process.
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