After spending months searching for the right place to call home, you’ve finally found it. It’s in the school district you wanted, a comfortable distance from your new base, close to shopping and restaurants, and it even has that spacious kitchen you’ve dreamed about. Now, you just need to convince the sellers that you, among the many interested buyers, are the one they want.
When the market brings dozens of buyers to the seller’s doorstep, how can you stand out and ensure that the seller entertains your offer? When you're in the thick of the home buying process, learn to think about it from the seller’s perspective.
1. Appeal to the home seller’s timeline.
Be willing to move now—right now. Military homeowners rushing to sell their homes before their next PCS move are seeking serious buyers with their affairs in order. Some sellers prioritize a quick, stress-free close over squeezing out every dollar, especially if they're under PCS pressure. As military families, you’re familiar with the rush and panic that military moves bring. Relieving the seller's stress and helping them get out the door and onto their next adventure can speak volumes to military sellers.
2. Offer cash.
If you can, make a cash offer. Although it's not possible in every situation, cash reduces the risk for the seller by ensuring a faster timeline, since the sale isn’t contingent on a mortgage approval. Cash also removes appraisal-related delays, which can be a sticking point in fast closings.
3. Include a pre-approval letter.
“Having a pre-approval letter ready and waiting can give you an edge when it comes to pursuing a house. In a competitive seller’s market, when there are bidding wars and countless other buyers vying for the same property, proof that you can afford the home might be reason enough for your offer to rise to the top. Or let’s say, for example, that the home seller is pressed for time before a PCS move (that never happens in military life, right?). With your financing already lined up, they’ll know you’re a sure thing.” -Mortgage Pre-Qualification vs. Pre-Approval: What it Means and Why It Matters
A pre-approval letter during the home buying process confirms to the seller that you’re not only ready for a quick purchase, but it gives strong assurance that the lender won’t reduce your borrowing amount, assuming no major changes in your financial status.
What's the difference between pre-qualification and pre-approval for a home loan? Learn more in the short video below from Realtor Karen Hall.
4. Make a non-contingency offer.
Home inspection contingencies are the most common home contingencies because they help protect the buyer from making a bad investment. While waiving inspection contingencies can be appealing to sellers, it can expose buyers to financial risk. You might instead consider an "informational-only" inspection contingency, which allows an inspection without demanding repairs, signaling confidence without removing all safeguards. However, in most cases, the seller reduces the purchase price to compensate for any necessary repairs the inspector reveals or completes the work before closing day.
That said, you should leave out any contingencies regarding the sale of your current home if you want your offer to stand out. Rushed sellers will likely toss out any offers that require the sale of your home to purchase theirs.
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5. Include an escalation clause.
By adding an escalation clause, you agree to increase your offer by a specified amount if a higher bid comes in.
What an escalation clause does:
- It tells the seller you’re a serious buyer and don’t want to lose the home.
- It reduces the risk for the seller, ensuring they’re not passing up a better offer that's waiting right around the corner.
- It can keep the transaction moving quickly by avoiding a bidding war in a competitive housing market.
But the escalation clause requires total transparency. As soon as you include the clause in your offer, you’ve told the sellers what you’re willing to pay. Keep in mind that sellers may use the clause to push your offer higher, and you’ll have already revealed your maximum willingness to pay. This is where working with a real estate agent can be helpful.
6. Appeal to the seller’s emotions.
While buying a home is a financial transaction, it's often also emotional. Our home is the backdrop to family memories, the start of every day, and our haven at the end of long ones. Just as emotions can get involved when you’re looking for a home to purchase, they run high when it’s time to sell and say goodbye to the place you called home for years.
As a prospective buyer, be mindful of the seller's feelings. Instead of touring the home and vocalizing all the things you would change, save that conversation for the privacy of your car. Offer compliments on the space and ask what they used the quirky nook in the den for. Showing a personal interest goes a long way for sellers and gives them a chance to see that you’ll appreciate and care for the home just as they did.
Making an offer on a home you love can be nerve-wracking, especially in a competitive market. But with these tips, you’re ready to make a confident, compelling offer, and hopefully, get the yes you’re looking for.
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