Making your Home Bid Stand out Every Time

Making a bid for your dream home is serious business and no one wants to get denied and have to start looking all over again.

After all, four million Americans buy a home each year, according to this article from the Associated Press, published on ABC’s website. But of those 4 million, there’s no way to tell how many offers actually get accepted.

Here’s how you can make your Home Bid Stand out among the Crowd

Lesson number one, it’s not about who bids the most money.

A seller’s main fear is that your home bid won’t go through. To avoid any hiccups along the way, make sure your finances are in order before placing an offer.

It’s best to make sure your t’s are crossed and your i’s are dotted before you put your money down on the table.

Elizabeth Blakeslee, a Coldwell Banker broker in the capital region, recommends that you make sure the lender checks your credit, assets and employment status before pre-approving you loan. Also, be sure to get a detailed letter with the amount you are authorized to borrow to avoid any confusion.

Signal that you’re a Serious Buyer

Signal that you’re a serious buyer by putting down a sizeable, good-faith deposit. A 2 percent to 4 percent escrow deposit is the norm, but you want to stand out, not follow the crowd.

Nancy Itteilag of Long and Foster real estate, who has been listed among the top 10 agents in the country for sales volume by the Wall Street Journal/REAL Trends, tells her clients to write a check for at least 10 percent.

Rest assured knowing that you won’t lose that 2-4 percent deposit. Within 30 days, the buyer must hand over the money as part of the down-payment anyway.

“If the seller has a nice deposit in escrow, they know the buyer is not going to wake up and change their mind,” Itteilag says.

The Dreaded Repairs

Every home is going to need to be repaired sooner or later, but you don’t want to be on the sooner end of the spectrum when you buy your new home. To eliminate hidden repairs or replacements, have the home inspection done before putting in an offer and specify any repairs you’d like the seller to make.

When making a home bid, it’s all about communication.

Or you could buy a home warranty or request that your agent throw one in as a closing gift. That way you’ll know that if anything goes, you’re covered and you won’t have to pay for it sooner rather than later.

Eliminate Home Appraisal Surprises

Did you know that if the value of the property as assessed is lower than the purchase price, the buyer can actually back out of the deal? However, you shouldn’t run into this problem unless you’re paying cash because most lenders require an appraisal before underwriting a mortgage, according to Blakeslee.

If you absolutely must have that house, you can volunteer to pay (out of pocket) the potential difference between the low appraisal amount and the purchase price.

Tug on the Heart Strings

Sometimes, a personal connection with the home can make all the difference. Write a letter to the seller and tell them why you fell in love with the home and the community. They should appreciate the sincere gesture. During your house tour, look for something that connects you to the family. Perhaps you went to the same college. Mention this later to help build a rapport with them.

These gestures may seem small, but they could help you land your dream home when the competition is tight.