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    8 Tips to Get Your Purchase Offer Accepted By the Seller Sunday, January 14th, 2018

    In today’s competitive housing market where inventory is limited and multiple offers are the norm, it is important that a buyer’s offer stands out from the crowd. Buyers and agents have to be creative with their offers and also provide full transparency upfront, so the seller will feel comfortable that a buyer will be able to obtain financing and close escrow. Here are 8 tips that will help your purchase offer stand out from the crowd and get accepted.

    8 Tips to Help your Offer stand out from the crowd.

    Here are 8 tips that will help your purchase offer stand out from the crowd.

    1. Include a personal cover letter with your purchase offer

    A good idea is for the buyers to write a personal letter to the seller, so they can explain why they love the home and why they are the perfect buyers to purchase their home.

    Include this letter with your offer and also include a family picture too.

    If you can tug at the heart strings of the seller, they may be more inclined to choose your offer over others. Many agents and buyers tell me this strategy works like a charm!

    2. Your loan approval letter verifies the type of financing

    Include a loan approval letter with your offer that clearly explains what type of financing the buyer is getting and how much they are putting towards the down payment.

    Make sure the loan approval letter is signed by the lender and lists their contact info too, so the seller can call and verify all the information.

    If you are qualified for conventional financing and putting down 20% or more, write this into the loan approval letter, as this will usually place ahead of an offer with a lower down payment.

    If you are submitting a FHA or VA offer and are using a limited or zero down payment, follow the rest of these steps below to strengthen your offer.

    3. Include a DU underwriting approval with your offer

    Always include a Conventional, FHA or VA DU underwriting approval with the loan approval letter to strengthen the offer.

    A DU (desktop) underwriting approval is when a buyer’s loan application, credit report, income and assets have been ran through the conventional, FHA or VA automated underwriting systems and was approved.

    A DU underwriting approval displays the most important information on a buyer’s profile. For example, a DU approval verifies a buyer’s credit scores, debt to income ratios, down payment amount, total assets and reserves, and the type of loan program they are approved for.

    This is a great tool to discuss the strengths of the buyers profile with the seller, so they can see how well qualified the buyer is.

    4. Provide proof of down payment funds

    Always include proof of down payment funds along with your purchase offer.

    Make sure the name on the bank statements, or any other account being used for the down payment, matches the buyers name on the contract and approval.

    Always verify there are enough funds in the statements to cover the down payment listed on the offer.

    If the buyer is getting a gift from a family member, provide a gift letter and proof of funds from the donor so the seller knows where the funds are coming from.

    5. Close the Transaction Faster

    Being able to close a transaction faster is another way to entice the seller to accept your offer in this competitive market.

    For example, if a seller is reviewing 3 offers, and there is a 17 day offer, a 30 day and 45 day offer, often the seller will go with the faster closing.

    My company Citywide Financial Corp can close a Conventional or FHA Purchase Transaction in 17 days, and a VA purchase in 21 days. I have a great team set up with 2 loan assistants dedicated to help close transactions fast. Contact me for more details on how we can close your transaction faster.

    6. Increase your deposit

    Want to show a seller how serious your offer is? Consider putting down a bigger deposit in earnest money.

    This may seem risky for some, but earnest money is there for a reason. If you are uncertain about putting a “noticeable” amount of earnest money on the table, it may be a sign to the seller that you are uncertain about the house itself.

    Assuming you hold up your end of the bargain and you have the right contingencies in place, it won’t cost you any more in the long run since the deposit goes towards your down payment if financing is involved.

    7. Be flexible and don’t ask for any seller credits

    It’s a good idea to ask the seller’s agent upfront what you can do to make the offer more enticing to the sellers.

    For example, can you be flexible on the closing date for the seller?

    Also, a purchase offer asking for seller credits to pay for your closing costs will usually place behind an offer that does NOT ask for any seller credits. Instead of asking the seller for a credit, we can give the buyer a lender credit to pay for some or ALL the buyers closing costs.

    Another tip is to offer to pay for the sellers Owners title policy and transfer tax. These fees only amount to roughly $2,500 on a $400k home, so this is another way to sweeten the deal for the seller to accept your offer.

    8. Offer one month of free occupancy. 

    When purchasing a home with a mortgage, your payment doesn’t actually come due until a month after you close. Why not offer it up to your seller to sweeten the deal? A seller could very well need that occupancy and offering to pay their “rent” for a month could strengthen your offer.

    In Summary

    I hope you founds these 8 tips helpful. The offer that is presented the clearest, is flexible, and addresses any issues upfront, is usually the offer that stands a better chance of getting accepted.If you have any questions about any of these tips above or getting approved for financing, please do not hesitate to contact me directly at 858-442-2686. I look forward to chatting soon.

    P.S. If you would like to be updated faster on important industry news or any new loan programs that come out, please join my Facebook page .