It is not uncommon for homes to receive upwards of ten offers in just a few days in the current housing market. If you are trying to buy a home and your offer has yet to be selected, do not give up. We have developed strategies that have proven to help buyers get their offers accepted in a highly competitive market. Here are our top 5.
Offer a Rent Back Period
Many sellers are selling their homes with no new place to move into. If the sellers of the home are in this predicament, offering them a rent back period for a couple of months while they found a new home could make your offer stand out. This would alleviate so much stress for them and would likely save them money too.
It is important to note that renting back to the sellers comes with a lot of risks. You will need to have a lease drawn up to protect you from any damages that happen during the rent back period and also set firm dates that the seller needs to be out of the house.
Make Your Offer As Clean As Possible
Offers full of contingencies will make a seller nervous that something could go wrong, and they will end up back on the market after a few weeks. If it is possible, submit an offer free of contingencies. This can be risky since the purpose of contingencies is to protect you, the buyer. Here are a few ways you could minimize these risks.
- Have an informal home inspection during your initial showing of the home. You can check the age of the major systems, flip on the light switches to make sure they all work, check for leaky faucets, open and close the garage door and look around for evidence of termites. Some sellers will provide a copy of the disclosure statement that you could review as well. If nothing looks alarming, and you
- feel comfortable moving forward, you could waive the inspection to make your offer stronger.
- If you are getting a mortgage, it is imperative that you start the approval process before you make an offer on a home. The financing contingency allows a buyer to walk away from the transaction at the last minute, so If you get as close to a full approval before entering escrow, you could take the chance of removing this contingency.
- If you have the cash to bring to the closing table, and you are comfortable paying more than the appraised value of the home, you could waive the appraisal contingency. The appraisal will still take place, but you will no longer have the option to back out or renegotiate the purchase price. Regardless of the appraised value, you will be expected to pay the amount you have offered, and lenders will not allow you to include overage into your loan.
Write A Letter
Letters are a very effective way to make a seller choose your offer over the others. This is especially true in cases where the sellers are selling their “forever” home. Selling the home where kids were raised, and memories were made can be an extremely emotional process, and receiving multiple offers can be overwhelming. if there are two offers on the table that are similar, the seller will most likely gravitate toward the one that came with a heartfelt letter.
Your letter doesn’t need to be lengthy, but it should include some information about yourself and your family, specific features of the home that stood out to you, and an explanation of your offer. Your letter should also be accompanied by a strong offer for the best chances of it being approved.
Submit The Highest Offer
This one is a no-brainer. Now is not the time to try to lowball or make a deal. The reality is, you will most likely have to go above the asking price in most markets, and will not have much say in the terms of the contract, if you want your offer to be accepted. Submitting the strongest offer of the bunch is the best way to ensure yours is chosen.
If you want to buy a home and are ready to take on this crazy real estate market, we are here to help guide you through the process. But whether you choose to work with us or not, our best advice is don’t go out there on your own. Instead, hire a real estate professional in your area to help you. When you are facing a competitive market, the more critical it is that you have an industry expert helping you through the process. The knowledge and experience they bring to the table can make all the difference.