4 Components of a Good Offer
In a booming housing market like Lancaster, Pennsylvania, making a good offer is imperative to securing your dream home. Properties across Lancaster are in high demand, and a strong offer with the right components will position you well if it comes to a bidding war.
Offer price is the number one component of a good offer. In the seller’s world, price is everything, which buyers need to keep at the top of their minds. When considering your budget, allow for some flexibility, as you may need to put down more than expected to make your offer more appealing. A cash offer is most desirable to sellers and will almost certainly put you at the top of their options. When cash is on the table, the risk of financing falling through isn’t present, giving the seller even more motivation to go with you.
Earnest Money Deposit
Also known as the down payment on your down payment. An earnest money deposit is like a “good faith deposit,” showing the buyer how serious you are about purchasing the home. At the very start of the transaction, you put down money that is held until you close the deal. Assuming that all goes well and you proceed to buy the house, this deposit is then added to your down payment. If you choose to break the contract, however, the seller still gets to keep your earnest money deposit. Offering more than the standard 1-3% of the sale price illustrates your serious intent in buying the house to the seller, giving them yet another reason to go with your offer, as they can trust you won’t back out.
Details and Contingencies
For the buyer, contingencies like inspections and securing financing confirm that the house they’re paying for is the house they receive. For the seller, though, contingencies can make the transaction more difficult for them and increase the likelihood that the buyer pulls out of the deal. When writing contingencies into your offer, consult with a realtor regarding how to best go about it given your specific situation and location.
Last but certainly not least, a good offer includes a negotiated closing date that both the buyer and the seller are happy with. When available, be flexible, and match the seller’s desired timeline for settlement. That will make your offer more convenient for them. At the very least, do your best to meet in the middle. This gesture won’t go unnoticed and may help you stand out among other offers.
By considering all four of these components, you as the buyer will put the seller’s needs first, therefore making it to the top of their list. While the offer price may be king of these components, each one carries its own weight, which means your offer may be chosen even if it doesn’t have the highest sale price. The Jeremy Ganse Team is highly experienced in helping buyers craft good offers as well as helping sellers evaluate their options. For assistance with buying or selling a home in Lancaster, give us a call at (717) 208-4240. We’d love to help you craft a good offer or decide upon the best one for your house.