4 Tips to Help Your Offer Stand Out

Buying a house is more than just putting money on the table. Sellers want to know a buyer is not only going to follow through with the purchase but also has an appealing offer that makes the transition of ownership as smooth as possible.

There are several aspects of an offer that can influence a seller’s final decision. Here are 4 effective ways to make your purchase offer stand out from the rest and increase your chances of securing your new home.

Become Ready, Set, Home! Certified

Union Home Mortgage’s Ready, Set, Home! program can give you a serious edge over other buyers in this competitive market. We can verify your financial information upfront with an underwriter and give you full pre-approval status to make a purchase. This means funding is fully secured, allowing you to make a reliable offer that will stand out to the seller.

We also offer our Lock & Shop program for those concerned with the rising mortgage rates. Lock & Shop allows you to lock in a rate for up to 90 days while you look for a home to purchase. As a result, you can shop confidently and save more money in the long run.

Get Your EMD Just Right

An Earnest Money Deposit (EMD) is a staple of a solid offer. It’s a deposit that shows the seller you are a legitimate buyer. Essentially, if you are willing to put money down from the start, the seller will know you are serious about purchasing the home. A real estate broker will then put this money into an escrow account, so you can later use it for your down payment and closing costs. But how much should you put down?

Typically, a seller will expect a minimum EMD that is equivalent to 1 percent of the purchase price, but if you put down slightly more, your offer will seem a lot stronger in comparison to others. A 3 percent EMD is usually the highest any buyer should go, but this does not come without risks.

If you have signed a contract but fail to follow through with the purchase, the seller can take the money you put down. Therefore, if you are not 100% certain you will go through with a purchase, it is better to stick with a modest EMD. Depending on your situation, you can find a sweet spot between 1-3 percent that makes your offer stand out without posing a significant financial risk.

Keep Your Offer Squeaky Clean

Making a clean offer makes the process smoother on the seller’s end and gives them an incentive to choose you. In this context, “clean” means that the offer has no contingencies. The standard contingencies are typically loan financing, inspections and appraisals. Waiving these contingencies can give you an advantage over the competition, but you may be worried about the implied financial risks. Thankfully, there are ways to protect yourself even without contingencies.

For example, our Ready, Set, Home! program fully underwrites your loan prior to making an offer, making it safer to waive the loan contingency. Also, if the seller provides reliable inspection reports, you can waive the contingency knowing that the home has little to no issues that haven’t been documented. This means you can make your offer more competitive with minimal risks.

However, waiving contingencies is never completely devoid of risk. Even inspection reports that seem up to date can have omissions, and you could be financially liable for issues that arise later. Or, if you use an appraisal gap waiver, you could be responsible for covering the difference in the event the appraised value is higher than your loan. In short, waiving contingencies to make a cleaner offer is always a balance of risk vs. reward.

Complete Your Offer, Check it Twice

This one may seem obvious, but you need to make sure you have fully completed your offer before sending it. Even the smallest mistakes can be interpreted as red flags that will get your offer thrown in the trash. A competitive housing market means you will be competing against several other buyers, so your offer needs to be on point to stand a chance.

Double check to ensure your offer has the proper disclosures, including all necessary information for the purchase agreement, and confirms that you will be providing an EMD. The seller is going to be receiving countless complete offers, so neglecting any of these areas will put you at a significant disadvantage.

In Conclusion: Always Be Prepared

Buying a house can be a long, complicated process, but with the right planning, it doesn’t have to be. Carefully preparing your offer and getting pre-approved can mean the difference between getting your dream home or having to continue house hunting. If you can show a seller you are serious and ready to buy, you will have your new home in no time.