Published July 18, 2022
Tips for Getting Your Offer Accepted on a Home in MN
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It's no secret; buying a home in a seller's market is tough. Given that the Twin Cities metro is a seller's market, trying to buy the right home for a price that doesn't break the bank can feel overwhelming. More often than not, placing an offer on a house can result in a bidding war that quickly escalates the cost beyond your budget. Fortunately, there are some things that you can do to improve your odds of having an offer accepted. Read on for some helpful tips on how to make an offer on a house in Minnesota that the seller is more likely to accept.
Top 5 Ways to Get Your Offer Accepted
Offer Above the Asking Price - As tempting as it can be to shave a few thousand dollars off the seller's asking price, this is the fastest way to get your offer ignored when the seller is looking over what prospective buyers have put on the table. If an ideal home is already toward the top of your price range, don't worry; even offering just 1-3% above the asking price can be enough to stand out from the competition to a person selling their home in Minnesota.
Pay Cash - Are you looking for a great way to make your offer a frontrunner for home sellers? Pay with cash! If you have the money to do so, paying with cash will make the home buying process a lot easier by cutting out middlemen such as banks and other lenders, allowing the buyer and the seller to negotiate directly with no strings attached.
Make a Bigger Down Payment - While the size of a down payment varies greatly and is dependent on many factors, buyers often put down a payment of 20% of a home's total value, which is generally enough to prevent buyers from having to pay private mortgage insurance. If you have the capital, it's best to commit to a larger down payment for a house. This can benefit you in a number of ways, including showing the seller that you're committed to purchasing their home and have the funds to do so.
Apply for Pre-Approval - Most buyers will need to take out a mortgage loan in order to purchase a house. The last thing you want to have happen is for a seller to accept your offer, only to discover that you can't obtain the necessary loan for the transaction. To prevent this situation and to reassure sellers that you're ready to buy their home, get pre-approved for a mortgage so that both parties are confident in your ability to pay for the house.
The Escalation Clause - An escalation clause is something you can add to your offer letter when buying a house in Minnesota which states that if another buyer outbids you, you're willing to pay a set amount of money more than that rival buyer. Doing so can prove your commitment to a seller and allow you to outcompete other interested parties, just be sure to set a maximum amount that you're willing to pay and have a trusted lawyer write up the clause.
Realtors Can Help You Navigate the MN Housing Market
All of the above tips can improve your odds of having an offer on a house accepted, and so can working with a team of real estate agents. Local realtors know all the tricks to making the housing market work in your favor, allowing them to help you purchase the right home at a reasonable price. Give Chris Fritch Team with eXp Realty a call today for expert help with purchasing a home in the Twin Cities area!
Offer Above the Asking Price - As tempting as it can be to shave a few thousand dollars off the seller's asking price, this is the fastest way to get your offer ignored when the seller is looking over what prospective buyers have put on the table. If an ideal home is already toward the top of your price range, don't worry; even offering just 1-3% above the asking price can be enough to stand out from the competition to a person selling their home in Minnesota.
Pay Cash - Are you looking for a great way to make your offer a frontrunner for home sellers? Pay with cash! If you have the money to do so, paying with cash will make the home buying process a lot easier by cutting out middlemen such as banks and other lenders, allowing the buyer and the seller to negotiate directly with no strings attached.
Make a Bigger Down Payment - While the size of a down payment varies greatly and is dependent on many factors, buyers often put down a payment of 20% of a home's total value, which is generally enough to prevent buyers from having to pay private mortgage insurance. If you have the capital, it's best to commit to a larger down payment for a house. This can benefit you in a number of ways, including showing the seller that you're committed to purchasing their home and have the funds to do so.
Apply for Pre-Approval - Most buyers will need to take out a mortgage loan in order to purchase a house. The last thing you want to have happen is for a seller to accept your offer, only to discover that you can't obtain the necessary loan for the transaction. To prevent this situation and to reassure sellers that you're ready to buy their home, get pre-approved for a mortgage so that both parties are confident in your ability to pay for the house.
The Escalation Clause - An escalation clause is something you can add to your offer letter when buying a house in Minnesota which states that if another buyer outbids you, you're willing to pay a set amount of money more than that rival buyer. Doing so can prove your commitment to a seller and allow you to outcompete other interested parties, just be sure to set a maximum amount that you're willing to pay and have a trusted lawyer write up the clause.
