From an article, “Making an irresistible home offer” in Kiplinger’s Personal Finance, there are several noteworthy points:
- Be preapproved. Although this isn’t a loan guarantee, it shows the seller that the buyer’s income and credit have been verified as qualifying for a mortgage of a certain amount.
- Don’t lowball. Use the sales prices of comparable nearby properties to formulate a good offer. In a competitive market you often don’t get a second chance.
- Add earnest money. The extra deposit can show sellers how serious you are.
- Keep contingencies to a minimum. Although sellers prefer no contingencies, buyers must protect their interests. Reasonable contingencies include financing, inspections and satisfactory appraisal.
- Write a letter. Personal love letters about the home and why the buyers want it can tip the balance.