Is there a trick to getting offers accepted in a Seller's Market?
You’ve found your dream home and have submitted your offer, even over asking price and you’re convinced it’s a sure thing that your offer will be accepted, right? Not so fast.
Being in a seller’s market means there are more buyers than there are homes for sale and unfortunately means a full price offer isn’t necessarily going to cut it. So, what is a buyer to do? Here are some guidelines to help push your offer to the front of the line.
Submit a Clean Offer
Presenting a clean offer means not making your purchase contingent on the sale of another property or attaching other financial constraints to the offer. Additionally, submitting an offer that does not ask for seller concessions, such as closing costs, puts you in a much stronger position to have your offer accepted. Removing contingencies such as the loan contingency, appraisal, and inspection from your offer is another way to improve your chances because it will make your offer more appealing to the seller. For a buyer’s protection it is best for them to have their loan fully underwritten, meaning they have completed the entire loan process with the lender before submitting an offer on a home.
Don’t Bog Down the Offer by Asking for Personal Property
You may be wowed by some of their furniture, but our advice is don’t ask for it. Asking for items from the seller that are not part of the contract could weaken your offer and put you in a lesser position.
Write a Personal Letter
One way to strengthen your offer is to write a personal letter to the seller. Sellers are emotionally attached to their homes and want to be sure their home is going to a good family or individual, they want to know your story and why you have fallen in love with their home. They want to be sure their home will be in good hands, especially if they’ve lived in it for many years. Your personal statement as to why you love the house could make a big difference when it comes to bidding wars.
Submit an Offer Over Asking Price
Submitting a low-ball offer will not work in this market. If you really want the house, you’re most likely going to have to make an offer above asking price. Doing this will indicate to the seller you’re serious about buying the home, keeping in mind of course the value of the home.
Appraisal Contingency
If you’re financing the home with a loan the lending institution will require an appraisal however, you can waive the appraisal contingency and not make it part of the offer. Meaning there will still be an appraisal, but the lending institution will only loan you the amount of money the property appraises for, so you as the buyer will have to come out of pocket for the difference. By waiving this contingency you’re telling the buyer you’d be willing to do so. Be sure you’re in a strong financial position to waive the appraisal because you are taking a risk.
Increase Your Downpayment
Offering to put more money down is another sign of good faith to the seller and shows that you have more skin in the game and are serious about buying the property.
Escalation Clause
An escalation clause means your offer will be higher than other offers up to a maximum price set by you and your agent. Robb Realty Group’s experienced real estate agents are well versed in writing escalation clauses and will write one to go along with your offer.
Cash Offer
Cash offers show that the buyer is serious and has the financial means to expedite the closing. Cash offers are typically more desirable to the seller.
Submit a Complete Offer
Make sure your offer is complete it’s a competitive market and sellers are receiving multiple offers, unfortunately mistakes could result in your offer getting tossed. Be sure to cross all of your “t’s” and dot all of your “I’s”. Robb Realty Group will partner with you to be sure your offer is complete and in the best position for the seller to accept it.
The Bottom Line
Be sure to establish that you’re a serious buyer, with the financial capabilities to meet all obligations. That is the surest way to a seller’s heart. The Robb Realty Group team of agents and preferred lenders are here to help. Call us at 770-331-1590 or email ericrobb@robbrealtyatlanta.com if you have any questions about buying, selling or refinancing, we're here to guide you through this important, exciting time.