Here are six ways you can make your offer stand out in a hot market.
It’s no secret that the real estate market is competitive right now. Is it even worth it for buyers to look for homes? I think so, and today I’ll share six tips to help your offer stand out in a crowded field:
1. Submit a large earnest money deposit. Pending home sales sometimes blow up. A lot of sellers are nervous that a buyer might back out of a sale at the last minute, so a large earnest money deposit could help alleviate those fears. Your earnest money deposit will go toward your down payment if you end up closing, so if you’re serious about a home, a large contribution could be an easy way to stand out to the seller.
2. Show the seller you are qualified. Almost every offer will come with a lender letter. To stand out, get pre-approved instead of just pre-qualified. You can also have your lender call the listing agent and reassure them that your money is good.
3. Give the seller time to move. Buyer possession is often a sticking point. It’s hard enough to juggle all the responsibilities of selling and buying, so cut your seller some slack. If you don’t expect any compensation in return, your offer will become much more attractive.
“With a great agent, you can figure something out that works for both you and the seller. ”
4. Shorten or waive some contingencies. In California, you have 17 days for inspections. While I always recommend you get a home inspection, you can shorten the period to give your seller some peace of mind. These options can be risky, but with a great agent, you can figure something out that works for both you and the seller.
5. Write your best offer. In a competitive market, you need to submit a high offer upfront. Be prepared to pay 2% to 3% above the original asking price. Some sellers intentionally ask for less than they want to create a bidding war, so you won’t truly be paying way above market price.
6. Add an acceleration clause. This has helped a ton of my clients recently. You create a threshold in your contract, where if someone offers more than you (up to a certain amount), your offer’s price automatically matches it. If it’s set up properly, you run no risk of overpaying for a home.
Hopefully, these tips helped you realize it’s still a good time to buy a home. If you have any questions about today’s topic, please call or email me. I am always happy to help!
