Friday, January 3, 2020 / by Dawn Schultz
In a seller’s market, you need to be able to make your home offer stand out. Here are four ways you can do so.
When it’s a seller’s market, buyers are competing with each other for the few homes that are available. Many buyers wonder if it’s even worth jumping into the market when there’s so much competition.
During a seller’s market, listings often receive multiple offers from potential buyers. Even in these multiple-offer situations, however, it’s typically a good idea to write an offer anyway. Here are three helpful ways to ensure your offer has a better chance of beating the competition.
1. Submit a large earnest money deposit. After accepting an offer, many sellers fear their buyer will back out of the transaction. An earnest money deposit is part of your down payment, but by increasing it above the normal amount, you show a seller that you’re serious about closing.
3. Shorten or waive contingencies. For example, you have 10 days to inspect for lead-based paint. However, you can waive this to tighten up your time frame. You should always get a home inspection, but try to do it sooner rather than later. You can also waive the loan approval contingency if your loan is secure. Ask your agent whether you should waive the appraisal contingency.
4. Write your best offer. Instead of hoping for a negotiation, make the highest offer you possibly can. Get a comparative market analysis from your agent to get an idea of what you should offer. Sellers sometimes set their prices low to stir up more offers, so paying more doesn’t always mean you’re going above a home’s market value.
If you have any questions or would like more information, feel free to reach out to us. We look forward to hearing from you soon.