Here’s how to write the most secure offer possible.
If you’re making an offer on a home whose seller values security above all else, what do you do to prove to them that your offer is strong and will close? Here are three tips that will help you:
1. Make your earnest money non-refundable. You can do this at the beginning of the transaction when you open escrow, but the most secure way is to do it right after the inspection of the property.
2. Show the seller you’re a strong borrower. In Arizona real estate contracts, there’s a the loan contingency that states that if the buyer can’t get financing, they can withdraw from the contract at any time and get their earnest money back. Therefore, to show the seller you’re a strong borrower, you can waive this contingency. This leads me to my final tip…
3. Waive the appraisal contingency. In a multiple-offer situation, the purchase price can go way higher than the list price. However, this brings the risk of the property not appraising at the amount you’re willing to offer. By waiving the appraisal contingency, you’re showing the seller that it won’t affect you even if the property doesn’t appraise. This also means you’d be willing to pay cash to cover the difference between the appraisal amount and purchase price.
Of course, there are many other things you can do to be a strong buyer in our competitive market, so if you’d like to talk more about this topic or have any questions, don’t hesitate to reach out to me. I’m here to help.