There’s nothing new about the competitive real estate market facing buyers. If you’re hoping to buy a new home, you may be feeling some anxiety over what is frequently a multiple offer situation. So, what’s a buyer to do?
Here are 12 strategies buyers have successfully used to get their offer accepted, despite competing in a crowded field of buyers.
Offer an escalation clause. This contract provision forces your contract price to automatically escalate without the need to resubmit a contract or even amend the existing one. You’ll want to include a clause indicating a maximum amount.
Bump up the amount of earnest money. This tells the seller that you’re serious about the property. Giving a bit more strengthens your offer.
Offer flexibility. The sellers may have unique needs. If you can stay flexible and meet them, your offer could rise to the top.
Write an appraisal gap clause. Adding an appraisal gap clause to the contract–meaning a buyer is willing to throw cash into the deal to make up the difference between appraisal and purchase price–is a popular way for a contract to come out on top
Offer sellers a leaseback. Do the sellers need more time to find a house or prepare to move? If you’ve got the flexibility, you can offer a leaseback in your offer to purchase. Just be sure you understand how this could impact your home insurance or what this means in terms of your liability.
Be first and offer your best. In certain situations, the seller may simply be ready to move on and not want to wait around to sift through a stack of offers. If you can see a home as soon as it hits the market and make an immediate decision, go in with your best. The seller may just take it, rather than draw out the process.
Provide a pre-approval from a reputable lender. One of a seller’s biggest fears is that a buyer’s financing will fall through and they’ll have to start over again. Show your credit worthiness with a pre-approval from a solid lender.
Remove the financing contingency. Waiving the financing contingency lets the seller keep your earnest money if you’re unable to get financing. If you’ve got a solid credit history, removing this risk for the seller could get your offer accepted.
Increase your down payment. Just like your earnest money, increasing the amount of your down payment signals to the seller that you are serious.
Ask your lender to pre-underwrite your loan. Upfront underwriting takes loan pre-approval one step further, providing you with conditional loan approval before you even start your home search.
Skip the repair list. If you’ve researched the property’s history, consider forgoing a request for the sellers to make repairs.
Choose an experienced agent. Today’s market is no place for a rookie negotiator. As your real estate agent, I’ll not only guide you expertly through the process, but my experience in negotiating contracts and writing strong offers will work to your advantage.
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