For this month’s blog, I thought I would write on a topic that will help potential buyers avoid the pitfalls of buying a property and help relieve stress. The buying process can be stressful and sometimes complicated, there is nothing worse than having a deal fall through. Perhaps your offer is low? Perhaps there are multiple buyers for the same product? – How do I make my offer more appealing?

1. All Cash: The first, while might be the most obvious is always going got be the best. If you can afford to, make the deal all cash, forget about mortgaging and present your offer. Although all cash might seem like an impossibility, you could end up saving thousands of dollars if you go this route. The seller will see your offer as much more attractive as it is a matter of a wire payment into escrow, rather than multiple parties involved. You could end up getting the property much cheaper than you though if you go this route, the seller might take less because cash means less issues can arise.
2. Pre-Approved Mortgage: Come prepared with your offer. Before you start the process get a pre-approval offer from a bank, stipulating you are already pre-cleared to make an offer up to a certain amount. This saves the hassle of the seller or the seller’s representative being extremely worried about your finances; thinking being, if a large reputable bank is willing to provide you with funds, than the financial checks and due-diligence have already been performed.
3. Demands: If you don’t want anything from the deal, for example, you are flexible about not having the furniture, or having the bedroom repainted. The less demands you have the quicker the deal gets closed.
4. Closing Timeline: As I might have mentioned before, investors and sellers alike want to move the property quickly, if you help in this process you are making your offer more attractive. You can help in this process by making a quick close. Quick close means that you are able to get your finances and everything else in place for a possession date quickly. For example you are not wanting a six month close because you are waiting for the sale of another property. Seller’s and investors want to move on to other projects and do not want capital tied up, the quicker you can close, the more attractive your offer.
5. Backup Your Offer with Facts: If you plan to come in with a particular offer, make sure it’s backed by facts. For example if a piece of real estate you are interested in is a 1000 square foot, listed at $450,000, ($450 per square foot) and you come in with a $400,000 low offer, make sure you are backed with facts. Homes in the area are trading at $400 a square foot, or if the home needs renovation and is old and outdated, the seller then knows that he/she will have this issue with all potential buyers.

I hope that you will take these 5 items into consideration when you try to close a deal, they should help you in making your offer more attractive.

I leave you with this – the faster you can wrap up a deal the better your offer will be.