Six Steps To Get Your Home Offer Accepted

Things we don’t have much control over: The rain in Portland, Powerball sweepstakes, the resurgence of ugly holiday sweaters, and whether a home seller will accept a buyer’s offer. Right?

Wrong!

Okay, the first three things were right, but home offers acceptance rates are definitely something a good real estate agent has control over.
Most Portland home buyers tend to think that the bottom line of an offer is how much money they’re putting out on the table, but there’s more to it than that. So, how can you get in ahead of the next buyer in line with an irresistible home offer?

1. Don’t blow your first attempt. In the traditional real estate market, it might make sense to start low and see what a seller will accept for their home. However, in Portland’s busy real estate market, most of the time sellers don’t have to wait around for someone to offer them full price or better. So be sure your real estate agent is experienced, knows the market well, and can be confident that your offer is what the seller expects. If they shrug their shoulders and say “Sure, we can lowball it,” you know you’re working with the wrong agent! A good buyers agent will know exactly how many (if any) offers are on the table. They will know how long the home has been on the market. They will find out what a good closing date is for the seller. They will find out if the seller is going to delay responding to your offer in hopes of collecting more. What will sweeten the offer for the sellers? Perhaps they want a buyer that will take the home as-is, perhaps they want someone to close the sale as quick as possible or they want a long close. Who knows? Your buyers agent better find out.

2. Cash is king. If there’s any way to finance your home without using a traditional mortgage, do it. Many sellers will accept less if they know they can get the money in their pockets sooner, without waiting for financing period to close, without having to worry if the home will appraise (though you can make a cash offer subject to an appraisal it is just not necessary). Cash offers also tend to close at a higher percentage rate, since there is no chance of financing falling though, the bank refusing to lend (even after a pre-approval).

3. Preapproval letter. Most non-cash buyers know they need this for any offer to be taken seriously, but one thing they don’t think about is where that preapproval letter is coming from. Most sellers consider conventional mortgages to be superior to FHA or VA mortgages. Good seller’s agents know the best local banks and the ones that have problems closing on time. Make sure your Portland buyers agent knows that too and give their local lender recommendations a chance.

4. Personal letters help. Sellers can and will pick offers for emotional, not just financial reasons. Don’t be afraid to include a letter in your offer that explains why, exactly, you love their home. Maybe it’s the schools your children will have access to. Maybe it’s the perfect south-facing yard space that you will turn into a flourishing garden. Be honest, but let them know that this isn’t just an investment and that you will be putting their treasured home to good use. Also, don’t rely on a generic template, sellers will sniff that out.

5. Be ready to negotiate. An offer is just that – an offer. The seller might come back and say, we’ll agree if we can get some free rent back after closing, or if you’ll adjust the price. Stay cool, don’t go beyond your budget, but do be ready to think about what kind of compromises you’re willing to make.

6. Talk to your real estate agent. Let us know what you need and be as specific as you can about your finances. Not only does information enable us to put together the best home offer possible, but it also allows us to act fast when it’s time to put that counteroffer together.

Stay hopeful! The rain does let up now and then in Portland, someone has to win those sweepstakes, and ugly holiday sweaters won’t last. A winning attitude is half the battle, and if your real estate agent does not make you feel confident about your chances in the Portland real estate market, it’s time to move on and find one who will!