By Debbie Murray
I am frequently asked, "How much should I offer the seller?" The simple answer to that question is where did the seller price their home in relationship to the market? The difficult answer is that in a low-inventory seller’s market that you may have offer list price, near list price, or over list price to compete for a home.
One concern for paying top dollar may be whether or not the home will appraise if the buyer has a loan. However, in a tight market some buyers are willing to bring money to the table to close if the home doesn’t appraise. Remember that you are least likely to overpay if you are willing to walk away. This is easier said than done when there is little inventory.
There are ways to make your offer stand out. Pay cash, or put down a substantial down payment. Do not "junk up" your offer with excessive requests of the seller or ask the seller to pay all of the fees. Be flexible regarding your closing date and possession. Submit a pre-approval letter from the lender to the seller or proofs of funds when offering cash. And lastly, let the seller know how much you want their home and that you will love and maintain their home by submitting a personal letter introducing yourself. The more information the seller has with regards to a potential buyer the more educated the seller is in responding to the offer.
And remember that a contract in Texas is not fully executed until all parties have signed and the contract has been delivered to all parties. Do not submit incomplete offers with errors as you could lose your dream home due to technicalities.
Broker/Realtor® Debbie Murray helps luxury home buyers in the Dallas area facilitate real estate transactions through education. Contact Debbie at 214-558-1004.