Instead of renting a place, 52% of Americans are interested in purchasing their own home in the next 5 years, according to a recent study. This means that the real estate market is about to become rather hot again, and there is a good chance that there's going to be more buyers than sellers. Once you've found the perfect place that you'd like to call home, it's vital that you put in an offer as soon as possible with your realtor. To make your offer more attractive than the competition's, consider the following three tips.
An Escalator Clause to Outbid Other Potential Buyers
If you believe that the place that you're looking at is going to be popular among potential buyers, consider asking your realtor whether you should put in an escalator clause that might help you outbid other potential buyers. An escalator clause basically states that you are willing to pay a certain amount on top of the highest bid in order to secure the place. In most situations, an escalator clause is only recommended if the seller is looking to review all of the offers in one day before making their final decision.
Payment in Cash or a Pre-approval Mortgage Plan
Sellers want to know that they'll get paid with no hassle at all. This means that you can make your offer much more attractive if you are able to pay in cash or if you have already been pre-approved for a mortgage. While on the hunt for the perfect place to call home, start applying for a mortgage. If you get a pre-approval, you'll save a lot of time and guesswork in the future.
Few Contingencies that Affect the Seller
Depending on the seller's schedule and situation, certain contingencies might be more beneficial to them than others. For example, if the sellers are still looking for a new place to move into, they might not be so willing to move out of their current home immediately. You definitely don't want to add a contingency to your offer in regards to when they need to move out. Instead, it's better to be more flexible. Your realtor will speak to the seller's realtor to determine what the seller's needs are. This will allow them to better advise you.
If you have found a home that you'd like to call your own, it's important to put some thought into the type of offer that you're going to submit to the seller. At times, a minor clause or contingency may be all that's needed to make your offer less attractive than the competition's offer.