A great home in pristine condition may get scooped
up hours after being listed. So when competition is fierce, you
need to make your offer stand out from your competitors' offers.
To increase the likelihood that a seller accepts your offer,
consider adopting one or more of these strategies:
Price. Obviously, price tends to be the primary
consideration for sellers. In a hot market, when buyers outnumber
inventory, offers often come in at full price or above. When
you're competing for a home, to get an edge, think about adding a
clause stating that you will beat the highest offer by
"x" dollars up to "x" amount. Cash offers can
be more attractive to sellers as well. Although sellers will
receive their money at closing whether buyers pay with cash or
take out a loan, cash offers don't require lender approval. And
loan approval is never a certainty-it may delay closing.
Financing. It's not enough to be pre-qualified.
Pre-qualification only tells how much you can afford. Pre-approval
goes a step further. Your lender will thoroughly evaluate your
application-including verifying employment information and
financial disposition-then clear you for a loan of a determined
amount. Having your loan pre-approved gives you a sizeable
advantage by putting you on equal footing with cash buyers.
Good Faith Deposit. Buyers offering a
larger-than-customary amount of "earnest money," a
deposit that accompanies an offer, may get a seller's attention.
By committing more money up front, buyers demonstrate greater
sincerity and motivation to close the transaction. Your real
estate professional can guide you as to the appropriate sum for
your specific transaction.
Contingencies. Consider minimizing contingencies,
those clauses that allow buyers to back out of a contract if
certain conditions are not met. For example, it's common for
buyers to make the purchase contingent upon their securing
satisfactory financing. Obviously, offers with the fewest
conditions tend to be more attractive to sellers.
From a contingency standpoint, first-time buyers are often better
prospects for a seller's home than move-up buyers. Here's why:
Very often, buyers' offers are contingent upon the sale of their
present home. Even if a move-up buyer has an offer in hand, that
buyer's offer may be contingent on another contingency, and so on
down the line. If one transaction derails, they all might.
Relationship. Help the seller get to know and
identify with you by looking for ways to connect. For instance, it
may be through a shared appreciation of a certain style of
architecture. Let's say that you're fortunate enough to find
yourself competing for an original Frank Lloyd Wright-designed
home. After hearing about your visit to Taliesin West, Wright's
desert home, and your collection of Wright-inspired furniture, the
seller might be persuaded that you should be the next custodian of
this national treasure. Of course, the connection could be
something more conventional such as a shared love of gardening.
You'll want to persuade the seller that his prize roses will be
well tended.
Naturally, sellers would like to receive top dollar for their
home, but remember, they also want an easy, trouble-free
transaction. Thus, as a rule, the fewer the contingencies and the
greater the commitment, the more attractive your offer may look.
To obtain the most professional representation available,
contact me at 360-910-1570 today.
|
