You’ve found the perfect Whistler property and you’re ready to make an offer, but you’re not really sure how to go about it. Making an attractive offer is a balancing act between the buyer and the seller and can sometimes be difficult to get right. We spoke to our Realtors and asked them how to make an offer that will stand out from the crowd.
Have Your Paperwork Ready
A serious offer should have the paperwork to back it up. Your offer will be much stronger if you have all of your documentation in order, including pre-approval for financing and proof of your ability to pay the down payment. Offers with larger deposits are also more likely to be accepted.
Meet The Seller’s Price
Meeting the seller’s price is one of the best ways to ensure your offer has a good chance. If you are able to make an offer on a property that hasn’t been listed yet, then getting the seller to name their price first is a good step. This will mean you avoid putting in an offer that’s too high and overspending, or offering too low and being rejected immediately.
Negotiate with Closing Costs
If you want to make an offer below asking price then negotiating with closing costs can provide more wiggle room. Offering to pay half or all of the closing costs allows you to negotiate. If the seller counters with the full asking price, you can choose to accept it on the condition they pay the closing costs, or if they accept the offer you get the house at a discount!
There’s no reason why you only need to make one offer. Providing multiple offers will mean you stand out more and they feel more in control with options to choose from.
Increase Earnest Money
Earnest money is a deposit (usually held in escrow) that provides proof your offer is serious. It is typically around 1%-2% of the asking price, but if you want to show you are really serious you can always offer more. As this money would go towards your down payment there is little risk involved in this.
Be Careful with Clauses
Adding clauses to your offer will protect you if things don’t work out as expected, for example making the offer contingent on financing or the results of a home inspection is fairly common. However, try not to add too many as the fewer clauses a contract has the more appealing it is to the seller.
Flexibility is key to standing out from the crowd. If you are able to be flexible with the closing date then this will appeal to the seller – understand what their needs are and work together with them.
Add a Personal Touch
It’s important to remember that “the seller” is a person as well. Attaching a cover letter to your offer describing why you love their home and why you think it’s the right fit can sometimes be the difference when competing with other buyers!
For more information on making an offer, get in touch with one of our Realtors.