Is it even worth competing against other buyers in a seller’s market? This is what buyers ask themselves when there’s very little inventory. It's not unusual for sellers to receive five, 10, or even 20 offers. However, It’s almost always a good idea to write an offer.
Here are five tips to make your offer stand out among the competition:
1. Submit a large earnest money deposit. Pending home sales sometimes fall through, and many sellers are worried that once they commit to an offer, the buyer may back out of the transaction or default on the contract after the other buyers have moved on from this property. Earnest money reassures them that you’re a serious buyer. By increasing it above average, you’re showing the seller you’re very genuine in your interest in the home. You’re only offering more money sooner rather than later, and it speaks volumes to the seller.
2. Show sellers that you’re qualified. Almost every offer will be backed by a pre-qualification letter. To stand out, ask your lender for a loan pre-approval letter, which is one step closer in the loan process than pre-qualification. Being pre-approved makes you a more suitable buyer in the seller’s eyes.
3. Give the sellers time to move. Buyer possession of the house is often a sticky point in the negotiation. It’s hard to juggle multiple closings if you’re buying and selling at the same time, and even more difficult if the sellers are doing the same. Give them two to three days to move after the closing without expecting anything in return. They’ll love it!
4. Write your best offer. Offer the highest price or a bit over list price, and make it attractive. Ask your real estate agent for a competitive market analysis (CMA) on pricing. Sometimes sellers set a price below comparative sales in the area to get buyers into a bidding war. So paying a little bit more doesn’t mean you’re paying more than market value.
5. Don’t request favours. This is not the time to be asking for their furniture or requesting for the front door to be painted. Asking for extra things when other buyers are not can get your offer eliminated.
If you have any questions about purchasing a property in today’s market or have a topic you’d like us to cover in these videos, please give us a call or send an email. We look forward to hearing from you.
Hope this guide was helpful, and please do not hesitate to contact me at 647.930.1888 or firstname.lastname@example.org to discuss the purchase or sale of your home, investment advice or if you would just like more information.