Tips On Getting Your Offer Accepted
As a buyer in a hot seller’s market, it’s very possible you’ll find yourself in a multiple offer situation. It can feel daunting to compete with other offers, but there are practical ways to make your offer stand out. Here are 5 tips for getting your offer accepted!
1) Start with your best offer.
It may seem obvious, but coming in with anything other than your best offer is unlikely to get the seller’s attention. And with properties going under contract so quickly, there isn’t much (if any) time to counter. Discuss what price you would be willing to loose it over. For example, if a home is listed for $499,000, would you be upset if you lost it to someone who bid $505,000? If so, your first bid should be $505,000! Make sense?
It’s also helpful to have your agent include a CMA (comparative market analysis) with your offer. Your agent should know the value of the home and also what they see this home selling for.
2) Shorten your contingencies.
A typical option period is 10 days. In this market, a shorter option period gives the buyer less time to terminate the contract, therefore making YOU the safer option! To make your offer even more attractive you could also (if possible and within reason) waive the appraisal. This means if the house does not appraise, the buyer will bring the cash necessary to closing to cover the appraisal gap. Again, this is WITHIN REASON.
3) Offer a leaseback at no cost to the seller
With homes going under contract so quickly, the sellers aren’t left with much time to move themselves! If you’re able, giving them extra time in the home can help make their transition much smoother and less stressful. Imagine having to pack up your family and everything you own in just a few weeks, then being given the option of having a few months instead! That extra time can be extremely valuable to the seller, making your offer more enticing.
4) Put more earnest money down.
Earnest money is a deposit made to the seller that represents a buyer’s good faith to buy the home. The fee is typically anywhere from 1-3% of the purchase price, and the seller keeps the money if the buyer decides not go through with the purchase. Putting more earnest money down does two things, it tells the seller that you are a serious buyer, that you don’t plan on backing out and you’re willing to put money behind your intention. Additionally, if something unforeseen were to happen and you weren’t able to complete the purchase, the seller keeps a larger amount of money. This makes your offer worth their time to consider.
5). Offer to pay the title policy, which is typically a seller expense.
The title policy in real estate is a part of the closing costs, typically paid for by the seller. Offering to pay the title policy is not only a good faith gesture as the buyer, but it also saves the seller money. Often times at the end of the day, the seller will be looking at the numbers to determine which offer they’ll accept. Paying for the title policy is an opportunity to make your offer more competitive, without escalating the purchase price. This is especially helpful if you are concerned about the property appraising or don’t feel comfortable paying above appraisal value.
Let’s focus on controlling the controllable, and get you a house!
As always, if you have any real estate questions or concerns, give us a call!
Hal Gahm 210-994-0050
Staci Gahm 210-415-8329
