Currently, the inventory on the market is very sparse and properties are selling like hot cakes! Buyers are often paying over asking price and even waiving inspections. However, there are other (smarter) strategies that we can share as realtors to help make your offer attractive to the seller. Below we share out best secrets to writing a winning offer that will stand out in a multiple bid situation!
1. Cash is king – if you can bring cash to the table your offer will likely be the top contender.
2. Pre-Approval – get pre-approval not only so that you know exactly how much you can spend but also to show the sellers you’re a serious buyer and the deal won’t fall apart last minute over your lack of ability to obtain financing. In this market, sellers are even asking to see the buyer’s pre-approval prior to even showing the home as a means to immediately sort out unqualified candidates.
3. Offer more – unfortunately it’s not a buyers’ market so you may have to pay more than asking, but don’t waive the inspection, this will help give you an idea of how much money you may have to put into the home after you purchase it. Paying more than asking price and repairs will add up quickly. Remember the true value of the home is different than the price of home and that number is different for each buyer and their unique situation. Lastly, consider including in your offer that as the buyer, you’re willing to accept any and all repairs up to a certain dollar amount.
4. Limit the contingencies – If you have a home to sell, sell that first and crash with friends or family, rent and use storage facilities while you search for your home.
5. Let the seller have some say – Allow the seller to choose the closing date. They may need time to find a home or they may need to get out of dodge quick! Allow them more freedom will make your offer more appealing.
6. Be personable – Relay as much information to the seller’s agent as possible. This will help show you are a more than just an offer on a piece of paper you’re a family, new to town, first time home owner or grandparent etc. Let them know what you love about their home and why you are eager to be the next owner.
7. Another way to offer more – consider putting more earnest money down to help show you are a serious buyer.
8. Add addendums – there are a few here that are wise to discuss with your agent including an escalation offer which states if anyone beats your offer, you’re willing to raise yours by a certain amount and there’s also the appraisal addendum which states if the house doesn’t appraise for what you offered, you’re able to cover a certain amount of the difference.
9. Become a landlord – If the seller needs additional time to move you could offer a rent back agreement. After closing, the seller rents your new home (their old home) from you. This way you can keep a closing date that works for you and ownership has been transferred to you but you also make money to cover the mortgage while you wait to move into your new digs.
Consider these options before you waive the inspection. We can’t rely on all sellers to be upfront about any issue with the home be it something they honestly new about or not. The search and offer processes on properties is so challenging in this market you should consider the inspection your number one piece of mind that you are not rushing into a bad decision. For help finding and winning a bidding war on your next property contact us!
