Vacation in your condo, villa, or luxury home
Homeowners who have listed their home or condo for sale mostly prefer to sell their home in the quickest time possible. Accordingly, an all-cash offer is usually the best offer as there are less contingencies and less things that can go wrong since financing is not a factor.
However, if you are like 75% of real estate buyers, you will be financing your purchase transaction should you not have $300,000-700,000 lying around for a home in a luxury development.
You can still come out on top even if your offer includes financing.
1. You need to convey to the seller and agent that your offer is not that different from the all-cash buyer. Upon submitting your offer, provide a recent account statement which shows you have necessary funds to close as well as any closing costs. A statement that shows your available funds are far more than the down payment can come in handy if the appraisal value comes in low.
Get a pre-approval letter from your lender (not a pre-qualification letter) that shows the maximum loan amount, your FICO credit scores, and if they are very strong, even your debt-to-income ratio (DTI) and loan-to-value ratio (LTV) to communicate you are a great candidate.
2. Keep your offer simple and without trivial conditions. Your offers has a smaller chance of acceptance if you ask the seller for too much. If your buying in a competitive market which means sellers routinely receive multiple offers, don't ask the seller to transfer the appliances or furniture to you free, or for them to pay for closing costs or a home warranty plan.
3. A big deal breaker for many sellers, is when they see an offer come on that includes a contingency for the sale of the buyer's home. You may want to thoroughly inspect the house and accept the property in "as-is" condition. This is tricky situation but a home warranty plan or needed fixes may be able to be corrected later.
4. Make your offer better than the cash buyer. If you know the seller is in a hurry, lessen the closing date to ten or 15 days. Then again, if the owner needs to occupy it after closing for a little while, offer them a free leaseback for 7 days post closing. Moreover, a number of sellers really need to do a leaseback post closing.
5. Identify with the seller's feelings. Anyone who has lived in a home for quite a while has some kind of emotional connection with it. If you see the home has a special item well-cared for amenity like a deck, fruit/vegetable garden, pool, sports court, etc, . Within your purchase offer, draft a letter to assure the seller you'll look after these special places in the sellers' heart.
As an owner-occupant in a hot market, work every angle at your disposal to make your offer the best. Investors can't really play this angle so well since the seller knows they just want to profit and may tear down their beloved home and memories.