Standing out when buying a home is a tough one and the stress that comes when submitting an offer on a house you’ve fallen in love with can be a real nail-biter. Luckily, going the extra mile can put you in a position above the other offers in a competitive market. If you want to stand out when buying a home, you need to be creative and willing to do a little extra work. Luckily that extra work isn’t going to burn a hole in your pocket and we’re going to give you some simple ideas to put you in the best position possible to stand out when buying a home.
Have Your Deposit Ready And Then Some For Buying A Home
Before you can begin the home-buying process, you need to have money in place. One of the first things you need to do is deposit money (at least 5 per cent of the purchase price) into a bank account you have full access to. You will need a certified cheque or bank draft to give to the sellers as well (which costs a few bucks). Having that in hand will show sellers that you’re serious about putting an offer in on their home. The more money you can offer to the seller at this point will further strengthen your offer.
Make sure you save extra for the closing costs too (typically 3-5 per cent of the house price). Your down payment and closing costs will be part of the total amount you pay for the house. The interest rate paid on the loan will also be extra money you must pay each month until the loan is paid off, so make sure you’re doing the math and can handle the financial stress.
If you need help figuring out a ballpark number, most banks have a free and useful mortgage calculating tool that can help!
Pre-Approval Is The Golden Ticket
You might not have a golden ticket to a chocolate factory, but being pre-approved for a mortgage is the next best thing. Having that pre-approval means you’re ready to go and that’s extremely attractive to sellers. It lets them know you’re serious and that the deal won’t fall through. The pre-approval will make your bid incredibly strong when put against other offers.
Speak to a mortgage broker before you do anything else to get the pre-approval. As a side note, a great real estate agent should be suggesting or asking whether you’re pre-approved or not. Keep this in mind because it could be a sign of their inexperience.
Put A Face To The Offer Letter
Writing an offer letter is a tried and true tactic to stand out from the rest of the bidders. The intent behind writing an offer letter is to put a face on the offer you’re submitting and to show emotional attachment to the property you’re interested in. Think of it as tugging at the seller’s heartstrings. Your words could persuade the seller to work with you over everyone else, even if your bid isn’t the highest amount. Mileage does vary because most people want top dollar for their property, but it doesn’t hurt to try a personalized letter.
Flexible Closing Dates Gives You A Competitive Edge
Not everyone wants to move out in 30 days. Think of all the things you need to pack and arrange before uprooting your life to another home. Now think about the seller and all the things they might have going on? For example, their new home could be in the process of being built or they might need some of the money from the sale to help stimulate their next move.
Being flexible on a closing date can be very attractive to a seller and could sway them toward your offer. It’s not uncommon for closing dates to be months out. Think of it as something to look forward to, but realize that it’s an effective bargaining tool that can be used to edge out your competition.
Pick An Experienced Real Estate Agent
Using an inexperienced real estate agent could lead to you missing out on that perfect property. Do your homework to see who will be the right fit for your real estate needs. Read reviews and ask people you trust. The last thing you need is someone who’s completely unfamiliar with the market and gives bad advice.
The Golfi Team’s reputation in the real estate industry is built on trust and over 25 years of experience. Putting your greatest investment in our hands means the world to us and we’ve always been dedicated to making sure our clients get exactly what they’re looking for with little to no stress.
Call us today with any questions and see why we’re the number one real estate team in Southern Ontario.