In a real estate market with low inventory and high buyer demand, such as the one we are currently experiencing, buyers might find it more difficult for their offer to be accepted by the seller. Here are some great ways to make your offer stand out against the competition!
Proof of Financial Capability
If you are financing your purchase, get pre-approved and provide the pre-approval letter with your offer. This will show the seller that you are not only financially able to purchase the property, but that you are also serious about it, having already taken the steps necessary to obtain a loan. If you are paying cash, provide proof of funds (when your buyers agent suggests).
Increase Earnest Money Deposit
When you make an offer on a home, the earnest money deposit that you put in escrow can go a long way. An earnest money deposit of $10,000 rather than $1,000 tells the seller that you are a serious buyer, and serious about purchasing the property.
Make your First Offer Count
In a market when homes are selling close to, at, or even above list price, make sure your first offer is a strong one. If sellers are receiving multiple offers on their house listed at $250,000, they might not even counter a lowball offer, they could just reject it. Your agent might advise you to offer close to list price, or even above, if there are multiple offers on the table.
An offer with less contingencies is more attractive to the seller. If you submit an offer contingent on selling your home it tells the seller that there are a lot more steps that must be completed in order for you to successfully purchase their home. Instead, work with a lender to get approved for financing that is not dependent on the sale of your home. Other things to avoid to keep your offer clean is to exclude any seller concessions, or attempt to include certain pieces of furniture (that were not a part of the sale).
Many sellers want to close quickly so they can move on, rather than dragging on for months. If you are able, offer to close as quickly as possible. If you are doing inspections, schedule them in days, rather than in the standard 10 to 14 days.
Which strategies of these you use will depend on many different things, including the property type, your financing, level of motivation and competition. Make sure you speak with your buyers agent! Don’t have an agent? Click here to meet our agents!