Try these five strategies to increase the competitiveness of your offer.
Given the competition for homes in the current market, many potential buyers come away from multiple-offer situations disappointed because their bids didn’t win. So what can you do to make your offer stand out in the seller’s eyes? Here are five ways you can bolster your offer:
1. Show up fully pre-approved or with proof of funds. If you’re getting a loan, get pre-approved by a trusted local lender before submitting your offer. Local lenders carry more weight than national companies. If you’re paying with cash, have a statement available to show you have the money on hand to purchase the property.
2. Bring your best offer to the table. Sellers call the shots in this market. To catch their attention, try waiving contingencies or accepting the property as is. That may sound scary, but sometimes that’s what it takes to win against your competition. If you’re concerned about waiving inspections, I recommend getting a home warranty. It only costs a little bit more than you’d spend on a home inspection, but it will last a whole year, and you can always extend it when the time comes.
“Tailor your offer to the seller’s need to increase your chances of getting it accepted.”
3. Work within the seller’s time frame. Some sellers want a quick close, and others need more time to find another home. If they need more time, offer a rent-back agreement where you allow them to stay in the home for a certain period after closing. You can either make it free or charge them rent. Doing so will allow the seller to purchase another home without the contingency of selling theirs.
4. Find out what’s important to the sellers. Your agent can speak with the listing agent to find out what the seller is looking for. You can tailor your offer according to their needs, increasing your chances of getting accepted.
5. Think outside the box. Make your offer stand out from the rest. Remember that you’re trying to purchase a home and start the next chapter of your life. Don’t sweat the small stuff.
In this seller’s market, you’ll face some competition and may even lose a couple of times, but if you try again, you’ll win and be that much closer to creating new memories.
If you have questions about purchasing a home in today’s market or anything else to do with real estate, give us a call or send us an email. We’d love to help you.