We are in a very competitive Real Estate Market. When an accuratley priced property comes on the market, you can count on having 10-20 showings in the first 2 days on the market. There will most likely be an offer in the first few days. The ‘coming soon’ market trend has added to this onset of appointments. It is a very stressful market. I have been asked over and over again, what can I do to make my offer better. I have put together a few items depending on your financial situation.
What can I do to compete in this market:
- Have your realtor set up an auto email to you so that you are advised as soon as property hits the market
- Set up an appt to see the property right away!
- Make sure you are ‘ready to bid’ — don’t delay or you will lose out
- Get pre-approved with lender before looking. Make sure your lender is available to provide documentation upon bid
- Make sure your funds are available.
What can I do to make my offer more attractive to a seller:
- Offer a higher deposit
- Offer your highest and best price right away. Often times clients are paying more than asking price! Buyers are using “Escalation Clauses” in their offers, so you may need one in your offer also
- Do not ask for a seller assist – In this market, you will lose out
- Get the best type mortgage for the seller to consider
- Submit your pre-approval with your offer
- A strong buyer should also submit a buyer’s financial information sheet showing stability
- Be aware that some buyers are making offers with no testing. If you have concerns, have tests done. Buyers need to make their assessment of the need for testing in their offer as to their desire to own the property and based on their own knowledge and expertise. If you wish to forego testing to make your offer more attractive, be aware that you will be ‘locked into the deal’ and may be stuck with any defects which may have been discovered. NOTE: government financing may require some testing. REMEMBER, Home inspections & radon tests are NOT required by any lender, they are your choice, for your protection.
- Depending on the seller’s situation, a shorter or longer settlement date may benefit seller.
Unfortunately, if you need to sell a home in order to purchase, you may be making several offers before one is taken. You will most likely have to seller yours and stay somewhere while you look for another in order to compete. Don’t get discouraged. Be creative, but stay within the law. I have had buyers borrow from relative to make cash offer and then refinance afterwards. Others have allowed seller to stay a month or so (depending on their mortgage guidelines) to allow the seller longer to find something to buy. Not everything works for every buyer, so it is important to get input and advice of your real estate professional.
