Your purchase offer can be considered a “blueprint for the final sale” of a home. It contains all the items that will serve as a guide to the final agreement, including things such as the purchase price offered, the down payment, the loan amount, the deposit, and contingencies.

If the seller agrees to almost everything and wants to further negotiate a term, you will most likely receive a written counteroffer with the changes the seller prefers. You are then free to make changes in your own counteroffer. Each time either party makes a change in the terms, the other side is free to accept or reject it, or counter again. The document becomes a binding contract only when one party finally signs an unconditional acceptance of the other side’s proposal.

In this seller’s market, however, it’s become quite common for a house to draw multiple offers. If you have found a home you love, consider some of these tips to help you beat out the competition.

Get A Pre-Approval Letter

A pre-approval letter can help you stand out in a competitive market. If you submit an offer on a home against someone who is not pre-approved, your offer will likely be taken more seriously. Sellers prefer to negotiate with pre-approved buyers because they know you are financially qualified to obtain the loan needed to close on their home.

Write A Personal Offer Letter

Highlight all the features of the home that you love in a personal letter to the seller. The seller likely has fond memories in the home, so connecting with them and acknowledging the hard work put into the home could give you a leg up.

What’s more, sharing some things about your life may let them know that you are the right person for the home. If the neighborhood reminds you of where you grew up, or you think it will be a wonderful place to raise children, mention those things in your letter to create a personal connection with the seller.

Put Down A Solid Earnest Money Deposit

A larger earnest money deposit (EMD) is a great way to show the seller you are a good-faith buyer and that your intentions are real. Typically, EMDs are about 1 to 3% of the purchase price, so putting down a deposit on the higher end of this spectrum will likely be seen more favorably.

Offer Above-Asking

Have you fallen in love with a home? Now you must put your best foot forward to make sure you stand out from the crowd. In today’s competitive market, full-price offers may not be enough to seal the deal. Take the time to go over your budget and figure out how much you are willing to pay for the home. While there isn’t a simple, one-size-fits-all answer to how much one should offer over asking, you should understand with great confidence what comparable properties in the area are selling for to determine whether it is appropriately priced or overpriced.

Are you looking to buy a home in Winston-Salem or any of the surrounding areas? The Sharpe Mortgage Team would love to help. Call us today to set up a time when we can review your financial goals and determine a loan program that might be right for you.