In today’s competitive real estate market, buyers are facing stiff competition and need to bring their A-game when making an offer on a property. With multiple offers becoming increasingly common, it’s essential to strategize and present the most attractive offer possible to stand out from the crowd. Here are some winning offer strategies to consider during a competitive seller’s market:
1. Offer Your Highest & Best
When making an offer in a seller’s market, it’s crucial to come in strong right from the start. Sellers are often looking for the highest offer they can get, so don’t hold back. Offer your highest price that you’re comfortable with and that aligns with the market value of the property.
2. Cash is King
In a competitive market, cash offers reign supreme. If you have the means to pay cash or can offer something close to it, your offer will be much more attractive to sellers. Cash offers typically involve fewer complications and faster closings, making them highly desirable.
3. Inspection Period/Due-Diligence
Consider shortening the due diligence period, which is the time you have to conduct inspections and back out of the contract without penalty. A shorter due diligence period, ideally three days or less, signals to the seller that you’re serious and ready to move quickly.
Speed up the appraisal process by ensuring the appraisal can be completed within 14 days or less. Additionally, consider including an appraisal clause in your offer, offering to pay a specified amount above the appraised value if it comes in lower than the purchase price.
5. Closing Time
Offer to close the deal sooner if possible, ideally within 21 days or less. A faster closing timeline can be appealing to sellers who are eager to move forward quickly.
6. Earnest Money/Good Faith
Increase your earnest money deposit as a show of good faith. This deposit, which is typically applied towards your closing costs, demonstrates your commitment to the purchase.
7. Escalation Clause
Include an escalation clause in your offer, stating that you’re willing to pay a specified amount above the highest offer received, up to a maximum price. This clause helps ensure that you remain competitive without overpaying for the property.
8. Request Right to Request Repairs
Offer to accept the home as-is but reserve the right to request repairs if any major defects are discovered during the inspection, particularly those related to safety or health hazards.
In conclusion, navigating a competitive seller’s market requires strategic thinking and creativity. By crafting a strong offer that addresses the seller’s needs and concerns while positioning yourself as a serious and qualified buyer, you can increase your chances of securing the property you desire.