In a competitive housing market like today, where inventory is limited, multiple offers can be likely. Here are some useful tips on how to convince a seller to accept your offer.
Regardless of the current market, it’s important that a buyer’s offer stands out amongst the rest. Price may often be the primary consideration of a seller, but it is not the only thing a seller looks at. Real estate is a financial transaction but it is a personal, emotional experience. Once you’ve found a home and you are ready to make an offer, there are ways to make your offer more appealing to the seller.
Here are some tips on creating an offer that can’t be refused:
Make your cleanest offer
Creating an offer that is extremely favourable to the seller can be just as beneficial to you as offering the right number. Reducing or even waiving contingencies and provisions are a great way to entice a seller to favor your offer. Contingencies are designed to protect you and protect your deposit in the case that something goes wrong. Your offer could be more appealing to a buyer if it is not contingent of the sale of another property, finances, or even concessions such as asking the buyer to help with closing costs. It’s important to only waive contingencies if you’re comfortable with the possibility of losing your deposit if you choose not to buy or are unable to buy.
Put down a noticeable earnest money deposit
Your earnest money deposit (EMD) is proof that you, the seller, is a good-faith buyer. It is a way to show that you’re serious about buying this house and have intentions to purchase. Putting down a stronger deposit will not end up costing you more in the long run because this deposit will go towards your down payment. If you aren’t comfortable with a large deposit, this may be taken as a sign by the seller that you’re not sure about the purchase of the house.
Include a personal letter in your offer
If a seller has an emotional attachment to the home, they might have a difficult time selling to just anyone. A personalized letter to a seller ties together the emotional factors involved in the sale of a home. A letter can explain to the seller who you are and what you plan to do with the house. Complimenting the house and how it has been maintained can give the homeowner pride and allow them to feel that the home will continue to be cared for in the future. Recognizing that there is a person on the receiving end of your offer who will be making this decision may help you create an offer that sets you apart from the rest.
Choose the right real estate agent
When purchasing a home, an agent actively makes a huge difference. A few important qualities to expect in an agent who will represent you in a purchase are proactiveness, a good reputation and experience. Proactiveness in an agent is all about knowing that money is not the only important factor in getting an offer accepted. A proactive agent will always have your best interest in mind and will go above and beyond to get you the home that’s right for you. A good reputation is important because an agent with a reputation of misleading practices will be known in the industry. The goal of a real estate negotiation is to benefit both sides therefore it’s important your agent’s reputation does not reflect you in a negative way. Lastly, experienced agents are very familiar with the market and will be best suited to guide you in one of the biggest investment of your life.
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If you are seeking advice on selling a home in the Ottawa area, or have more questions for us, we are happy to provide you with helpful guidance and support. Email us at info@buyandsellottawa.ca or call us at 613-590-3036.