While it might seem like the highest offers always win in bidding wars for high-demand condos or houses for sale in Irvine, the best offer is actually the sum of all its parts. There are many different factors that can affect a seller’s decision. Understanding these and structuring your offer accordingly could help you get the home you really want for a lot less.
Cash Trumps Financing
There are many homeowners who would gladly accept a lesser amount of cash over a higher bid from a buyer with bank-issued financing. Cash simplifies and expedites the closing process by eliminating the need for an appraisal or any other steps that a mortgage company might require. With cash buyers, escrow closes fast and this is especially important if sellers will be using the funds that they secure from this deal to finance their own new homes.
Emotional Attachments Can Sway Seller Decisions
A home is a major financial investment, but many homeowners are also heavily invested in their homes in an emotional sense. Not only do they want top dollar for their Irvine home for sale, but they are often eager to see their homes go to people who are likely to be emotionally invested as well. This is why it is always a good idea to personalize your offer by writing a letter to the seller about why you want the home and how you intend to use it. Surprisingly, heartfelt letters have helped people secure properties even though their offers were much lower than those of other interested buyers.
A Proven Ability to Back Offers
It is important to have a pre-approval letter in hand or other proof of your ability to pay when making an offer on a home. Dollar amounts are of little value to sellers if they don’t see adequate proof of financing. A bidding war is the wrong time for buyers to mistake pre-qualification for pre-approval. Pre-approval means that a lender has reviewed your finances and has agreed to extend a specific amount of money based upon this review. Pre-qualification, however, is simply a general estimate of how much you may be qualified to borrow and is not to be viewed as a guarantee of funding.
If you’re flexible in how quickly you want the sale to close, you may have the ability to beat out higher offers. Most homeowners are eager to wrap things up fairly quickly, while others may need extra time to close out their own purchases. Your willingness to work with a seller’s timeline can significantly increase the appeal of any offer you make.
Interested in a new home? We can help! Our real estate agents specialize in all things Irvine, including Great Park, Quail Hill, Oak Creek, Woodbridge, and Northwood real estate in Irvine. Give us a call today at (714) 454-6304 and start the search for your dream home today!