The housing market in many parts of the country is red-hot. With limited inventory and an influx of buyers taking advantage of the low interest rates, the market has seen an unprecedented level of competition. The Grand Rapids market is certainly no exception. The competition can feel daunting especially when homes sell for over asking price. For buyers, this means that when the right home comes along, it is crucial to write your strongest possible offer every time. Check out these creative, tried, and true tips to getting your offer accepted!
Get a local preapproval letter:
One of the most important things you can do to enhance your chance of getting your offer accepted is to have a preapproval letter. This letter indicates that you are a serious buyer, and the lender can back your offer given your financial situation. Not all preapprovals were created equally! We have experience to prove that working with a local lender has advantages in a competitive market. Blatant self-promotion aside, listing agents prefer working with local companies that they are familiar with and can hold accountable. For instance, in our community the Treadstone preapprovals carry more weight, whereas our letter in Northern California might not mean anything.
What you get with a Treadstone Pre-Approval Letter:
- We have an outstanding track record and reputation in West Michigan
- We set responsible and accurate buying limits
- You work with an actual person who can offer financial advice for your situation
- Our appraisers and underwriters understand the local market
- Our approval and turn times are fast – especially faster than local banks, credit unions and most other mortgage companies!
- We communicate clearly and consistently
- We close on time, every time
Work with a local Realtor:
Once again, when house hunting, staying local has its advantages. A Realtor is a crucial asset when it comes to finding a home and getting your offer accepted in a hot market. Working with a reputable Realtor who is familiar with your area can be a game changer. Realtors typically have local connections and may know about properties before they hit the market. Your realtor can also help you strategically structure a solid offer by accounting for the market conditions in your area.
Did you know that you don’t pay their commission, the seller does! Need a great Realtor? We would be happy to connect you.
Offer a higher Earnest Money Deposit check or make it Non-Refundable:
The higher the earnest money amount, the more serious the seller is likely to consider the buyer. An earnest money deposit is cash that you offer the seller up front when your offer is accepted. At closing, it is applied to the down payment. Because the seller keeps the deposit if you back out, this gives the buyer more confidence in your offer.
Usually, waiving a home inspection speeds up the closing process and typically makes an offer more enticing for the seller. Waiving inspections means you are accepting the property “as in” so the seller is absolved of responsibility to fix issues with the home. This certainly carries risks; however, some clients may even bring inspectors to the showing in a competitive situation.
Going Non-Contingent vs Contingent:
A contingent offer is when the offer is dependent — typically on the sale of the buyer’s home. So, sellers tend to prefer non-contingent offers. To avoid a contingent offer, our Bridge Loan may be able to help!
*Our Bridge Loan Program allows you to use equity from your current home before your it sells. If you qualify with both mortgage payments (old house and new house) but you just need help with the the down payment, this program may be for you!
Offer an Appraisal Gap or Guarantee:
An appraisal guarantee means that if the appraised value of the home is less than the sale price, you agree to pay the difference. Remember, lenders cannot loan you more than the appraisal value, so this is an out-of-pocket cost for the buyer. It can be structured so that you commit to paying a certain amount above the appraised value, or an appraisal gap. For example, you could be willing to pay $5,000 above the appraised value but no more. You can write this in your offer according to what makes sense for you to show the seller you are serious and committed!
A common strategy in a bidding war is to use an escalation clause in your offer. In this case, you commit to pay a certain amount (say $1,000) above any other offers up to a specified amount. This gives you a chance to win the offer even if others come in higher than yours.
Give the seller a little extra Possession Time after closing:
If you can, offering the seller extra time in the home can be of great benefit to them and make your offer more competitive.
Guarantee a Quick Closing:
Here at Treadstone, we are closing loans in about 21 days! On average, Treadstone closes loans 7 days faster than other lenders in Kent County, and we close on-time, every time. No exceptions!
In this market, one of the best tips to getting your offer accepted is simply to make your best offer every time. If you love the home and don’t want it to pass you by, put your best foot forward. Remember, loan officers are more than people who do your mortgage. Treadstone loan officers personally advise you based on your needs and financial situation to set you on the path to successful homeownership.
Contact your favorite Treadstone Loan Officer today to get started!
On average, Treadstone closes loans 7 days faster than other lenders in Kent County!