In a buyer’s market, the winning offer is often less than the list price. The number of proposals is generally fewer, meaning you might be competing against one other buyer. Here are some suggestions for when the competition gets tough:
Sell Your Home First
If you’re moving and have to sell, don’t buy before selling. If you’re a first-time home buyer, you might already have the advantage over a buyer who needs to sell before buying because you have no contingency of sales.
Don’t expect the seller to pay for any of your closing costs. Instead, find out what items are usually paid for by the seller and offer to pay for a few. Some of these things are title policies, escrow fees, and transfer fees.
What is the seller looking for?
Find out what will seal the deal. Is it a fast closing? Longer escrow period? Someone to cut them a break on the small cosmetic issues? If it is reasonable, give it to them.
Spread the Love
Most sellers have an emotional attachment to their home and want to make sure the next buyer meet their expectations. You can be that buyer. Write a letter to the sellers. In it, tell them why you love their home and why you deserve to be the winning offer. Be enthusiastic, honest, and sincere--you'll steal their hearts!
Gear Up For The Counteroffer
You can write the best proposal, but the listing agent will probably advise the buyer to counter all of the multiple offers. Luckily you know this now so you can be ready for the negotiations if the house is worth fighting for.
Things run a bit differently in a seller’s market. Here is what you should know:
Submit a substantial deposit
There are times when pending home sales blow up. Most sellers are worried that once they commit, the winning bidders might back out or default on the contract after all the other buyers have disappeared--and they aren't wrong. An earnest money deposit is part of the down payment. By increasing it above normal limits, you are showing the seller that you are serious about closing. The only thing you doing differently is offering the money a little bit sooner rather than later, but it speaks volumes.
Prove You Are Qualified
Almost every offer will come with a lender letter. To stand out, ask your lender for a loan pre-approval letter. This will make you stronger in the seller’s eyes.
Give the Seller Time To Move
Buyer possession is a sticky, sticky topic. It’s hard enough to juggle multiple closings if you’re buying and selling, and even more difficult if the sellers are doing the same. Tell them upfront you’ll give them two or three days to move out after closing, without expecting compensation. They will appreciate the slack.
Throw Down Your Best Offer
In a seller’s market, you can’t hope for negotiation. Offer your highest bid. Ask your agent for a copy of the comparative market analysis and for their expert advice. These should help you to determine the cost. Sometimes a seller will deliberately set a price below comparable sales to generate multiple offers. Paying a little extra doesn’t mean you’re paying over the market value.
Juggling multiple Real Estate offers shouldn't leave you with a headache. That's why we created Clever. Clever uses top local real estate agents to lighten your load and help you save money. Call us today at 1-833-2-CLEVER or fill out our online form to get started.