Five tips to help you improve your chances of getting a home.
Given how our low-inventory, high-demand seller’s market is rife with competition, today I thought it would be a good idea to share how buyers can gain a competitive edge in multiple-offer situations. After all, buyers often face difficulties finding homes these days. Here are five ways to stand a fighting chance if you’re looking to buy a house:
1. Get pre-approved by a lender. I don’t just mean a pre-qualification letter but an actual pre-approval. If you’re getting financing, the seller will almost demand that you be pre-approved, so it’s a critical step.
2. Write your best offer. We’ve seen situations where a single home had 20 offers or more on it; one buyer even offered $90,000 over the asking price and still didn’t get the house. To stand a chance, you need to put your best foot forward. Ask your agent to determine how many offers you’re competing against for that home.
“The fewer contingencies you have, the better your offer looks.”
3. Accommodate the seller’s needs in terms of closing dates and occupancy. Make sure your agent finds out when your seller’s preferred closing dates are and whether they’re looking for a post-occupancy agreement. If they do need a post-occupancy period, it might be worth making that free to them to boost the appeal of your offer.
4. Exclude any possible contingencies in your offer. For example, if you think the house is in good enough condition to exclude the home inspection, then exclude the home inspection. If you’re not concerned about the appraisal, exclude the appraisal contingency—many homes aren’t appraising these days anyway. The fewer contingencies you have, the better your offer looks.
5. Consider writing a personal letter to the seller. Many sellers want to know why you want their house, which features you like the best, how well you’re going to take care of it, etc. Write them a personal letter detailing these things to generate an emotional connection and explain why your offer is the one they should accept.
If you have questions about competing as a buyer in today’s market or anything else to do with real estate, don’t hesitate to give us a call or send an email. We’d love to help you.