Here are my four tips for homebuyers to compete in this seller’s market.
Today’s real estate climate isn’t like it was a few years ago. It’s not about negotiating the best deal or getting the best price, it’s about winning the house. In many cases, you’re up against multiple offers and cash buyers. Here are four things you can do to increase your odds of winning in that kind of situation:
1. Make a cash or fully pre-approved offer. If you can buy in cash, that’s great. If you can’t, a fully underwritten pre-approval from your lender is the next best thing and makes you a much stronger buyer in the eyes of a seller than someone who is simply pre-qualified or pre-approved.
“Due diligence periods can easily be shortened.”
2. Find out what the seller wants. Sometimes they don’t want the highest price; they’d rather have a quick close or an extended occupancy. If you can align your offer to match what’s important to them, you could edge out an offer that’s higher in price but less flexible on terms.
3. Keep your contingencies short. You don’t need a super long due diligence period. Keep the appraisal contingency short, too. By doing this, the seller knows that you can get a deal done quickly, and the shorter the contingencies, the better.
4. Put down more earnest money. If it’s the home you truly want, there’s no reason to not put down more earnest money. If you flake out the day before closing, the seller will be comforted to know that they’ll be keeping more money, even if the purchase doesn’t go through. If this truly is the home you want, however, that won’t happen.
For a lot of sellers, it comes down to price, but others are more flexible. If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
