The Real Estate Market in California and especially the Bay Area, where I live, has been very active over the past several years. There are more Buyers and Sellers, and there is very low inventory of homes. Desirable homes are getting multiple offers. A lot of people think that the best offer is the offer with the highest dollar amount. Well, sometimes that works if you are paying all cash and all the contingencies are removed. That’s a strong offer. But for most of us, that’s just not possible. Today I’d like to talk about what goes into making a strong offer. This as valuable information for not only the Buyer, but for the Seller when reviewing an offer or offers with your REALTOR.
Aside from the offer price, there is the opportunity to strengthen specific terms in the contract. In these terms you can get creative to sweeten the pot for the Seller. Perhaps you could offer to reimburse the Seller for some of the costs associated with the sale of the property (i.e. inspections they had done on the home prior to putting it on the market). You could shorten one or all of the contingency periods or even offer a rent back after Close of Escrow at a reduced price to the Seller (if needed).
The down payment could be increased because a higher down payment percentage shows that you are serious. Make sure that with the offer, your REALTOR includes the qualification letter from your Lender, along with proof of funds from your bank accounts to show the money needed to cover the down payment. A simple screen shot of accounts is what is needed to show funds are available. This shows that you are serious and capable of buying the home. Work with your Realtor® and they will help you write your best offer.
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