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Buyers-Get an edge on the competition

In a hot real estate market one would think that those who pay the most money to purchase a home win. In many cases that may be true but buyers who learn what motivates a seller are proving to be excellent competitors to their deep-pocketed rivals.

To begin with, a strong offer is a must in this market, and a strong offer would include a earnest money deposit of at lease 1% of the purchase price (not necessarily exceeding $10,000.00), a pre-approval letter from a reputable lender, a large down payment, and as few contingencies as possible. In addition, depending on the property location, escalation clauses are becoming a common addition to most offers in Seattle. Keep in mind, unless a buyer is using all cash, inflated offers eventually hit a ceiling because lenders won't approve transactions that soar too far above appraised value.

When competing with other buyers who also have strong offers, one must consider a few techniques to make an offer compelling. Examples of these are to organizing pre-offer inspections, write a personal letters, and if possible meet the owner and make a good impression. In addition, it's important to find out why the seller is moving and then to figure out how to match your offer with their motivations.

One of the best things a buyer can do aside from securing a mortgage pre-approval is to conduct a pre-offer inspection. A typical sale contract requests several days (or more) to allow a buyer to get an inspection of the property. Those who pay for a pre-offer inspection can make offers that don't include the inspection contingency, which is a reassurance to sellers. A pre-offer inspection also means the seller doesn't have to take the home off the market while an offer is "subject to inspection." Paying the $350(+/-) for an inspection before one even has a signed contract is not for everyone, but if it is the house of your dreams $350 is a drop in the bucket.

Other strategies to consider include writing a personal statement and include photographs. For example, suppose the sellers are pet lovers and own a dog. If you share their interest mention your pet in a letter to the seller and include a picture. Also, being flexible on the terms of the contract may give you extra points. For example, suppose the seller has moved out of State but their son or daughter needs to stay two more months to finish their last quarter of college. In this case a buyer who is flexible regarding the closing date would be more attractive to the sellers.

It's best to be prepared so if you would like to jot down your thoughts or if you have any documents you've prepared send them to me at info@SeattleHomeKey.com. I'll evaluate them for you and get right back to you with feedback.

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• Start with a strong offer
  • Attractive Earnest Money Deposit
  • Pre-Approval Letter From Lender
  • Attractive Down Payment
  • Limited Contingencies
• Additional Techniques
  • Find out what is the sellers motivation for moving?
  • Pre-Offer Inspection
  • Write a personal letter to seller
  • Meet seller and make a good impression
  • Write a personal statement
  • Include pictures
  • Flexible terms