6 Tips for Getting Your Offer Accepted

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Filed under: Market Comentary

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Most of you probably know that the inventory levels of available housing across the nation are extremely low. And with this low inventory,  there is fierce competition brewing between homebuyers who are struggling to get their offers accepted.

If you are in a highly competitive market, you are going to need to become creative with your offers. Did you know that in San Diego, prices are up over 15% from where they were when the real estate market collapse was at its worst? And, the inventory of San Diego homes is half of what it was a year ago!

So, what should you do to get that edge over other homebuyers so you can have your offer accepted? Here are some tips to consider.

1. Update Proof of Funds

If you are serious about buying a house in the competitive market, you need to be able to clearly show the seller that you are a ready, willing, and able homebuyer with everything needed to close the deal. The first step is showing proof of funds in excess of the ‘down payment’ and projected closing costs. Your “Proof of Funds” should be a PDF file of your most recent bank statement, investment account, or other liquid cash account.

2. Get a Desktop Underwriter Approval Letter

There are currently a lot of cash buyers in the market and you may be competing against them for the house you want to purchase. So, it is vital to make yourself as much of a ‘sure thing’ as possible in the eyes of the seller. A great way to do this is to have a Desktop Underwriter approval from your lender. This approval is more than your typical pre-approval as it must go through an industry standard underwriting program and be analyzed by a computer program as well as your credit score. A Desktop Underwriter tells the seller you are organized, proactive, and ready to close escrow!

3. Include a Cover Letter

Make sure your agent prepares a highly detailed cover letter that clearly explains the main points from your offer. This will make you be identified as a strong buyer with an organized and professional real estate agent. The cover letter will not only back up our offer, but also assure the seller that you really love the property and will definitely close it when given the chance. In addition, try to make an emotional connection to the seller! It might just be the thing that breaks the tie between you and another homebuyer.

4. Think about Hand-Delivering the Offer

Back in the ‘old’ days, this was a common practice, but this art of hand delivering offers has largely disappeared. So, why not have your agent shock the listing agent by actually making a face-to-face visit when presenting your offer? Who knows, it could be what makes you stand out in this highly competitive market. Remember, the more professional you and your agent appear, the better the chance for success.

5. Write a Clean Offer

You are going to be making a big purchase. In the ‘old’ days, muddling the offer with things like home warranties or other little fees for the seller to pay was common practice, but now there is a plethora of buyers that are making offers free of this sort of thing. So don’t lose the deal by being so picky and just remember it is all about focusing on the big picture.

6. Follow Up

Make sure that someone from your team, usually your real estate agent, calls to follow up on the status of your offer. Remember that personal touch is important, so call and don’t email. A phone call shows more dedication to the deal.

With the competitive market in getting your offer accepted becoming more difficult, having any advantage is a plus. Contact me any time if you’d like to discuss additional strategies.

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