Ten Ways to Get Your Offer Accepted in a Seller’s Market
Now is the time to make an offer on your dream home. You’ve found the perfect house for your family and are willing to pay the asking prices. You think it’s a certain thing. But not so fast
A seller’s market is a market that has more buyers than homes for sale. This is different from a buyer’s market. This could mean that your full-price offer is not going to be accepted. What can you do to find the perfect house that you have been searching for? These tips could even get your offer accepted.
Keep your offer as clean as possible
A clear, no-contingency offer is a way to say that you are waiving any contingencies to make your bid more competitive and attractive to the seller. Clean offers should not be contingent upon the sale of other properties or have financial restrictions. A clean offer should not be subject to seller concessions. These are items that buyers ask for beyond the price of the property, such as assistance with closing costs. If a seller has received a lot of bids, it is better to make a clear offer than other offers that have contingencies.
I see a lot of accepted offers as a top producing lender. Those that have waived most of the contingencies are more likely to get accepted. Things like the financing contingency is something I help with for all my buyers. With my Certified Approved Homebuyer Program, my buyers are already approved for a mortgage so there is no need to have a financing contingency. This makes sellers and more importantly, listing agents, very happy. If you can waive things like appraisal value waivers and property repair requests, that will go a long way towards getting your offer accepted.
Most Realtors also suggested that you give up your inspection contingency. You can take little risk if the seller has provided inspection reports from reputable firms.
Do not ask for personal property
Do you find yourself swooning over the sparkling chandelier in the exclusions list? It’s not necessary to ask. Do you want them to bring in cool lawn furniture? You can skip it. Your offer may be very similar to an offer that doesn’t ask for items that the seller owns. Your offer could be weakened if you ask for items that aren’t included.
My Realtor friends suggest you buy your own furniture or chandeliers, or, you can wait until the offer is accepted, then ask for those things.
You shouldn’t make low offers to the seller’s market and hope that someone will take you up on your offer. Your offer must be strong enough to defeat multiple-bid situations. You will likely have to offer more than the asking price if you want to buy the house.
Do not let the idea of offering more than the asking price get you down. Sometimes you don’t need to offer more than the asking price to attract the seller, but listen to your Realtor, sometimes a full price offer is enough. This will let the seller know that you are serious about purchasing the house and that you are willing to work with them as potential buyers.
It won’t cost you anything to make an offer higher than the asking price if you take into consideration the cost of waiting. If the value of the home increases 10% a year, that is $50,000 on a $500,000 home. If you offer a higher amount than the asking price, your monthly mortgage payment and what you put down will only change a little. Your offer should be based on the property’s actual value. However, it probably will exceed the asking price in a seller’s market. This will ensure that you get the home you want.
Place a Stronger Earnest money Deposit (EMD).
Your earnest cash deposit proves that you are a trustworthy buyer. The real estate broker will usually take your EMD and place it in an escrow with the title company. Your EMD can be used to help you with your closing costs and down payment. EMDs average between 1 and 3% of the property’s purchase price. A larger down payment may indicate that you are serious about buying the home and your intentions are genuine.
If you are able to put down more earnest money, you should make sure you really love the home. Your EMD could be at risk if you don’t move forward with the purchase. Your EMD could be kept by the seller if you have already signed the contract but don’t purchase the home.
Waive the Appraisal Contingency
Most Realtors say an appraisal contingent can also be surrendered – but this presents the greatest risk unless there is enough cash to cover any shortfall between appraised and offered prices.
This is especially true in areas that are seeing a rise in property values and/or gained interest. Your offer to buy the house if it doesn’t appraise is a great way to stand out from the rest. You must be financially able to take on this risk.
You can make a larger down payment on your loan program
Offering to pay more down, regardless of the type of loan you take out, is another sign that you are trustworthy with your seller. If you are able to show that you’re financially stable, it is a sign of good faith. You send the message that your serious about buying the property and are capable of paying all financial obligations.
Use my “Cash Buyer” Program
Are you a home buyer or Realtor making offers on homes only to be beat out by cash buyers? I know it is frustrating. You are a perfectly good buyer with a strong pre-approval for financing. But in today’s market, sellers think cash is better.
In a competitive housing market, cash is king. Buyers who can bring liquid capital to the closing table are 3x more likely to win bids on the homes they want. But what if you don’t have the resources to afford an all-cash offer? No problem. I have your back and your cash, with my Certified Approved Buyer Program and our partnership with Ribbon, you can now make offers as a guaranteed cash buyer.
The Richard Woodward Team and Ribbon makes you a competitive cash buyer so you can land your dream home before you sell your current home. No double mortgage, and only one move. Welcome to the modern bridge loan.
Win in a competitive market ever with FHA and VA financing or 97% conventional mortgages. I provide you my Certified Approved Buyer Letter for the financing at your maximum purchase price, Ribbon provides your seller with a Cash Offer guarantee.
Cash offers have no home-sale, financing or appraisal contingencies and are 3x more likely to win.
Pay with Cash
In a highly competitive market, buying property with cash is a smart decision. This can make your offer more attractive to sellers who want to close quickly. You can also avoid paying extra interest and fees when you offer cash.
GrayRobinson Law Firm real estate lawyer Michael R. Santana states that cash offers have the important effect keeping the deal primarily between buyers and sellers – they are the ones who make the decisions and not someone else at the bank. A deal that is financed has to be subject to financing contingencies. This allows the buyer to exit without any hassle.
Cash offers show that the buyer is serious about closing and has the financial resources to do so. Cash offers give the buyer the opportunity to take control of the closing rather than letting the lender do it.
Make sure your offer is complete
It should not be difficult to pay attention to details in your offer. However, every day there are errors made in this process. You may have to provide missing disclosures, EMD, or other pertinent information in order to complete the purchase contract. These errors can lead to your offer being rejected in a highly competitive market. Make sure to use a detail oriented Realtor. If you don’t have a great Realtor, message The Richard Woodward Team, we can refer you a great one.
Sellers may reject your offer if they receive multiple complete offers. To ensure you are in the running for a spot, be sure to cross your “t” and “i”.
Get one month of free occupancy
Your mortgage payment normally is not due for 30-45 days after closing. To sweeten the deal, you might consider offering a free lease back to the seller. This may help strengthen your offer and be just what the seller wants.
If you decide to give one month free occupancy, be sure to discuss all details with the tenant. This agreement should be written so that all details are clear and concise. It is not a good idea to be a house guest who stays for an indefinite period of time.
Bottom line: Make your offer stand out
When you’re looking to place an offer on a property, there are many things to take into consideration. You need to move quickly when you find the right house. However, it is important to take the necessary steps to make your offer stand out from the rest. Your offer will be more attractive if you show the seller that your intentions and financial capabilities are serious.
Get preapproved for a mortgage before you start your home search. This will help you to understand the price range of your house and give you credibility when you present your offer.