Making The Most Of Your Offer

Today we wanted to bring you a few good tips toward getting your offer accepted. When a seller looks at an offer from a prospective buyer there are many aspects that they look at. It’s not only about price, but also about what they have to do and how long they have to do it to attain said price and close escrow putting the keys in your hands and hopefully a proceeds checks in theirs.

Different types of loans come with different sets of challenges, many buyers and sellers don’t always realize this but it should be a key consideration factor in both buyer and sellers strategies for real estate. We have all heard the old expression that “cash is king” and that statement has stood the test of time for a reason; it’s accurate. When a buyer writes an offer with cash there are no loan contingencies for a seller to be concerned about and the seller only has to worry about the buyer loving the property and being satisfied with what they are purchasing. But not everyone has cash to buy a home, infact full cash buyers are only a fraction of the market so let’s talk more about lending and different types of loans.

Whether the loan you are looking at is a Conventional Loan, FHA Loan, VA Loan or a loan with down payment assistance in the most basic of terms and all other parts of a contract being equal the more advantageous the loan is to the buyer the less advantageous it will be to the seller.

Conventional loans which have been the mainstay of the mortgage industry since time in memorial generally requires the largest buyer down payment and requires little or even sometimes no concessions from the seller. FHA loans require less down payment money from the buyer but often times require a monetary credit from the seller effectively netting the seller less money. Additionally property condition requirements are often more stringent with an FHA loan than they would be if it were a conventional loan. VA loans while similar in condition requirements to FHA loans most often times require a seller to pay certain fees on a buyers behalf that are not “normal and customary” to our area and have a dwindling effect on the sellers bottom line.

While this information is not a miracle or a mystery we hope that this information can help you to be able to write a better offer than is more likely to get your offer accepted and have you living in the home you desire instead of writing offer after offer and someone else buying the home of your dreams.