How to Make Your Offer Competitive When Buying a House in Mahopac

When beginning the process of buying a house in Mahopac, you want to make sure you can field a competitive offer in this market. Not only does it take time to find a home that suits your needs perfectly, you want to come out of the gate with a proposal that is going to make a terrific impression on the seller. To help you become the new owner of your dream home, here’s how to make your offer competitive when buying a house in Mahopac.

Make a Financial Commitment

Besides a price in your offer, there are a few other approaches to prove your interest in a home by putting your money where your mouth is. 

A serious offer when buying a house in Mahopac should include earnest money. This acts as a sort of deposit which typically ranges between one and three percent of the total offer price. If your offer is rejected or the transaction falls through, your earnest money is returned to you.  

Another road to consider is providing a sizable down payment, which can please both the seller and any mortgage lender you use. This also carries other benefits like avoiding the additional charges for Private Mortgage Insurance, or PMI, from your lender. 

When choosing a mortgage lender, you must carefully go through the steps of getting pre-approved for any necessary financing. This is an absolute must before putting in an offer! After you are pre-approved, your lender can give you a pre-approval letter clearly indicating your ability to cover the cost of the property by acquiring their financing assistance.

Pick Your Contingencies

When it comes time for a seller to comb through the details of their available offers and choose the one that works out best for them, it’s common to find that contingencies are a large deciding factor. That is why it is important to go over these details with your agent when buying a house in Mahopac.

An offer that comes in with a higher price and a laundry list of repair and inspection contingencies could end up costing the seller substantial time and money to the point that an offer with a lower price and few-to-no contingencies is ultimately the better deal. Outside of critical issues and lender requirements, the buyer is more often than not better off taking these concerns on themselves after closing. 

One reason this is recommended is that a seller that is in a hurry and wants to get the biggest financial return possible from the sale of their home is unlikely to invest the time and money to get the job done to the standards of the buyer.

Add a Personal Flair

While this may seem like something that is going out of style, some sellers can appreciate getting a personal letter from you explaining why you’re so interested in their home. 

Being upfront and honest is the key here in order to help build any sort of rapport and sway negotiations further in your favor. Mentioning some of the features of the home or even its neighborhood is a great way to show you already have a personal investment in this transaction and want to make it work. 

As an example, if you have or are planning for a family, bringing up proximity to parks or schools could be an exceptional point to bring up in your letter to the seller.

Consider an Escalation Clause

A lesser-known option is to submit an offer that includes an escalation clause, which states that you are willing to pay an additional amount of money over any competing offers up to a certain amount. 

If the seller accepts your offer that includes an escalation clause, they are legally obligated to abide by it up to your maximum bid amount. 

There is a level of trust required from the buyer when submitting an offer with an escalation clause, so we strongly suggest talking over this option with your realtor before attempting this strategy.

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If you’re looking for the assistance of an experienced, dedicated team when buying a house in Mahopac, contact us today at (914) 341-2998!

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