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What Makes A Strong Offer!

What Makes A Strong Offer?

When you think of a strong offer, the first thing you probably think of is putting in an offer over asking price. While this is one thing that can make a strong offer, it isn’t the only way you can present a strong offer. Here are a few things to consider when you go to make an offer on a home that may get around going over the asking price.

Faster closing

If you are looking to pay cash, you are more likely to close faster on the home. You don’t have to wait on having an appraisal done or go through all the paperwork that a lender requires. Some sellers are motivated by getting out of that house as fast as they can in order to move onto the next thing. By shortening how long it takes to close may be favorable to the seller vs. going over the asking price. If you are having to use a lender, you may also be able to close a little sooner. The best thing to do is get with your lender before you put in an offer and see how quickly they would be able to close.

More Due Diligence Money

When you go under contract you have a check you have to cut called Due Diligence money. This money goes directly into the sellers pockets. If you don’t back out of the contract and make it to closing, this money does apply to your total amount. Some sellers are more motivated by having money up front and in their pockets. It is a risk you have to take if you think you may have to back out of the contract as that money is not refundable. However, this also may save you from going over the asking price. Who doesn’t like essentially “free money”?

Paying For Your Own Closing Cost

You have an opportunity to ask the sellers to pay for some or all of your closing costs when you are putting together your offer. Closings can range anywhere from $850 and up depending on your lender as well as your closing attorney. In the eyes of the seller, they will be losing money. Your offer becomes your purchase price minus the amount you would like them to pay for closing. This could be a negative for them if they are trying to net a certain amount at closing or don’t want to pay it at all. If you are able to cover all of your closing costs, it may be good to pay for it all on your own or have a smaller amount paid by the seller.

At the end of the day, every seller is unique in what is important to them. Whether it’s going over asking price, having a shorter closing, more money up front or not having to lose any additional closing costs, there are many different ways you can make a strong offer. My team and I have had many years of experience in writing strong offers. How can we help you write your next strong offer?

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