Imagine that you have finally found the house of your dreams. It is priced right and getting a lot of potential buyers through. You want to make an offer, but what can you do to make sure your offer is the one that is accepted? Financially, offers can be broken down into three categories:
1.) An All-Cash Offer
Obviously, a cash offer is favored by any seller. In today’s real estate market, an all-cash offer is even more enticing. Last month, one in four real estate transactions were impacted by a low appraisal. An all-cash buyer eliminates the need for the bank appraisal.
2.) A Non-Contingent Offer
If you don’t have cash readily available, the next best thing would be to make a non-contingent offer. To do this you should be already pre-approved for a mortgage and have your current house already under contract. This gives the seller the confidence that you are already a qualified buyer who will be able to complete the purchase.
3.) A Contingent Offer
Some buyers start the process of looking for a new home before their current home is sold, which could be a big mistake. If you find the home you have been waiting for, it will be very difficult to get an offer accepted because the seller could see the offer potentially falling through down the road.
Asking a seller to wait until your home is sold is somewhat unreasonable in today’s market. One of the reasons you would want the home is because the seller priced the home at a value to sell it NOW. They want to know it is sold when they accept an offer.
Unless you have the ability to purchase with cash, the best thing to do is to be pre-approved for a mortgage and have your current house already in contract before looking for the home of your dreams.