When dealing with a super competitive market, like the one we have these days, bidding on a home can get intense. If you like high-stakes, high-stress situations, just submit a bid and wait for a response.
If you bid too low, the seller might not entertain it. If you come in too high, the home may not appraise as much. This is where the expertise of a real estate agent comes in. They help you gather intel, as well as monitor and analyze the area’s recent comparable sales.
All that be as it may, did you know that other elements besides the offer might woo the seller? There are some strategic clauses you may employ, as we’ve gathered from real estate agents.
If you’re looking for tips on how to make an offer that is accepted, especially in a buyer’s market, follow the advice given below.
1. Bid Above the Listing Price
Several factors are making home purchases extra competitive in 2021. Buyers are showing up in droves due to record-low interest rates. Additionally, the market is facing a shortage of homes, which is coupled with a delay in constructing new homes due to the COVID-19 pandemic. What’s the result? A large number of buyers bidding for a limited number of homes.
In other words, now’s the worst time to throw in a lowball offer.
First of all, if you’re not paying for the house with cash, you need to have a preapproval letter and proof of funds. Keep in mind that inventory is low right now, and demand is high, so properties are barely ever selling below the asking price.
If you really want to get your hands on a property at this time, you have to offer slightly above the asking price. Now, don’t think of this as you paying more than the house’s worth. Instead, just think that, in order to get your dream home, you’re paying next year’s price now.
Additionally, getting a good deal now can translate into lower mortgage payments. The call is all yours now.
2. Make Your Offer Stand Out
You can gain the upper hand on other bidders by adding some attractive clauses and contingencies to the offer in addition to a slightly higher price. The best thing you can do is uncomplicating things as much as possible.
Sellers are typically looking for quick and clear paths to the closing table so, taking things off of the demand such as inspections can really be a winning point. We understand that removing an inspection can be risky as hidden issues might add significantly to your expenses. But, you can bring a contractor to inspect the property before placing your offer.
Another useful strategy is bidding in multiple offers. Basically, you’ll be submitting your offer, coupled with the offer of a certain percentage over the highest offer the seller receives. Obviously, you can add a cap to this offer but, in most cases, going a bit over to get your dream home is not a bad bargain.
Additionally, you can add a rent-back offer. This entails that you can lease the property back to the sellers until they’re ready to move out. Having that convenience for the move can be very attractive to sellers.
Just remember that, given the competitiveness of the market, even these strategies might not get you the home you’re eyeing. To that measure, try not to put all your home-buying hopes into one house.