Tips for Home Buyers when writing Purchase Offers

The real estate market in central Ohio is heating up big time. Last night on Facebook, a local agent mentioned she was trying to set up showings for a buyer and 5 of the 6 homes that she wanted to show were in-contract even though the homes had been on the market for only a week.

If you’re a buyer, here’s some tips to help you have a better chance of getting a seller to accept YOUR offer versus the offers from the other two buyers that may also be submitting an offer.

• A real estate contract must be a win-win for both parties. Unlike some other types of contracts, if your contract is too one-sided, you risk having a seller tell you to “go pound salt”. Consider what might be important to the seller, then include that in the terms of your offer. Give a little to get a little. If your offer only benefits you, then you may have a difficult time finding a seller willing to accept your offers.
• Include a letter from your lender with the purchase offer. If you want the seller to take your offer seriously, then you need to demonstrate that you’re a serious buyer and have taken the necessary steps to make sure you’re likely to be approved for a mortgage. Sellers, as well as their agents, want to know who the lending institution is and whether it is a reputable company.
• Don’t insult the seller’s home. This is so obvious, but you’d be surprised at how often it occurs. Don’t make statements like, “the home isn’t worth more than $XXX”, and don’t provide a list of all the things that you think are wrong. You must have found some value to the home otherwise you wouldn’t be making an offer.
• Offer a fair price for the home. Your Realtor® will do comps for you to determine a competitive price for the home based on the features and amenities it offers versus others that have recently sold. Base your offer on this “fair” price. If that “fair” price is higher than the price your lender has approved you to buy, then you need to consider buying a home that’s closer to your approved price range. Your offer should be based on what the home is worth … rather than what you can afford.
• Include a “why we like your home” letter with the offer. This doesn’t happen as often as it should, but it can have a tremendous impact on the seller. If the seller thinks you’ll enjoy the same things as they have while living in the home, they just might be more willing to work with you on an issue that otherwise might be less acceptable to them.
• Buying a home isn’t like buying a car. Some people like to think that “playing tough” on negotiations makes them a good negotiator. Remember what your Mom said about honey attracting more flies than vinegar. Don’t let your ego get in the way. Although a home is a tangible item like a car, far more emotions are involved. The seller has lots of memories from the home, so remember that comments on the home are comments on a part of the seller’s life.
• Remember The Golden Rule. At some point, you’re going to be selling a home. Treat the seller as you would like to be treated. If you intend to low ball the list price, consider how you would feel if this were done to you. If you intend to write an offer that asks for everything except the seller’s first-born, consider how likely you would be to accept such an offer. Before submitting any offer, put yourself in the seller’s shoes and ask yourself if you were them, how would you feel about the offer. That’s not to say you can’t or shouldn’t watch out for your own interests, but perhaps a minor change might be enough to make your offer be THE ONE the seller accepts.

Buying a home isn’t merely a financial transaction. It’s highly emotional for both parties. Put a little compassion into your offer and you’re much more likely to get the home you always wanted and to have a more stress-free process until the BIG DAY when you’re handed the keys. CONGRATULATIONS!

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