Are you wondering how to make a competitive offer on a house without a Realtor? You're in the right place!
When you attempt to purchase a property without the guidance and expertise of a licensed real estate professional, it can be difficult to feel like you are able to make offers that stand out from the crowd.
After all, you are not receiving the same coaching and backup that buyers with an agent on their side seem to be getting.
But this doesn't mean you have to come in last. In fact, if you follow the steps below, you can secure your dream home in no time.
And the best part? You won't have to break the bank to do it.
How to Make a Competitive Offer On a House Without a Realtor
Here is everything you need to know about crafting the perfect offer to get your dream home at the perfect price:
Romance the Seller
This is one of the easiest ways to make your offer competitive. All you have to do is just get the seller to like you. A great way to do this is simply by writing a nice letter. Appeal to the seller's emotions by explaining why you want to purchase the home.
Is it in a good school district and you want the best for your children? Are you retiring and appreciate the home's renovations for ease of living? Does the big Oak Tree in the backyard remind you of your childhood home?
Many times, selling a home is not purely financial for people. Yes, our homes are our biggest financial assets, but we place a lot of emotional currency into them as well.
Play into this, but remember to be authentic. Sob stories can often turn off sellers.
Escalate Your Offer
If you are very serious about a home, you can indicate that you are willing to escalate your offer in order to secure it. You can do this by including an escalation clause in your original offer.
An escalation cause essentially works like this:
The listing price is X. You offer X. But, if you choose to include an escalation clause, you are saying that if anyone else makes an offer (Y) I am willing to offer Y + $2,000 (or an amount of your choosing) up to a certain point.
If an escalation clause is triggered by subsequent offers, then Realtors are usually compelled to present your offer to their client.
Get Pre-approved for a Loan
By coming to the negotiating table with pre-approved financing, you are signaling to the seller that you are serious about purchasing this home.
Realtor or no Realtor, getting pre-approved for a loan significantly increases your likeability to sellers. This is because your pre-approval can significantly decrease the amount of time that closing will take. It also signals that your finances are in order are you are serious about purchasing the home.
Offer a Quick Inspection
You don't really need 15 days to inspect a home. To make your offer more attractive, especially if you are trying to purchase a home without the guidance of a Realtor, offer a quick inspection.
You only really need five or so days to get the inspection done. This can also reduce the time it will take to close on a house, which will make you very attractive to buyers.
Sometimes eager buyers will do the inspection before submitting an official offer. They think that by doing this, their offer will be more attractive. This is because it is not dependent on an inspection. However, these buyers could lose the money from the inspection if their offer isn't accepted.
To get around this, you can offer an “as is” inspection, which means if the assessor finds problems with the property, you can fix them yourself once the house is officially yours, or simply walk away from the sale.
Make an Offer with No Contingencies
This is a risky thing to do, even if you don't have a Realtor. However, if you really want the house and can afford to make a gamble, you should go for it.
Contracts of sale for homes usually depend on financing and appraisal. This means that homebuyers reserve the right to get their deposits back if they can't finance the home or the appraisal doesn't support the purchase price.
If you are still applying for a mortgage, suspending one or both these contingencies can improve your chances when competing with cash buyers who have Realtors. But, like we said, it's risky.
Final Thoughts on Making a Competitive Offer with No Realtor
If you are navigating buying a home with no Realtor, you have to keep your wits about you.
To put yourself ahead, the most important thing you can do is get your finances in order. Save for a sizeable house deposit and know what you can swing financially on each offer you make, so you can include an escalation clause if need be.
That, coupled with a positive attitude, patience, and polite appeal to the seller will put you miles ahead of the rest of the pack.