Thursday, September 14, 2017 / by David Mcduffee
While the market has seen some slowing in recent months, our team has found that the best homes in the best neighborhoods are still very competitive. We have personally been in several situations in which our buyer is competing with multiple offers for a home lately. Sometimes we lose and sometimes we win, but we have found the tips below to be the most effective in getting our buyer the home.
1. Increase the earnest money deposit
This one is a personal favorite because the risk that our buyer will lose their earnest money is very low. We watch timelines like a hawk and ensure that our buyer never steps outside the agreed upon terms of the contract. This does, however, show the seller that you are very serious about the home.
2. Increase offer price
This seems intuitive, but the number one thing sellers care about is MONEY. Don't be afraid to offer above list, but be sure your realtor looks at comparable sales in the area to be sure it is justified. If you offer too much money and the property doesn't appraise at or above value, the deal could fall apart after paying for inspections and appraisal putting you out $1K or more for a home that you don't end up closing on. Not ideal..
2. Allowing the seller to occupy the home for a short time after closing
Even if the seller doesn't request to stay in the home after closing, allowing them to stay for one or two weeks gives them the peace of mind to move knowing that the sale has already closed and the deal won't fall apart after they have moved out. You can negotiate a rental rate for the time the seller is staying or allow them to occupy for a short time for free if the situation is highly competitive.
3. Flexible Close Date
Some sellers want to move very quickly and others need more time to make moving arrangements. Communicating in a cover letter that you are flexible on closing and willing to work with the sellers schedule can greatly reduce the stress of selling a home. Also, having a lender that can close quickly can give your offer an edge if the seller is already paying a mortgage on two homes.
4. Paying a portion of repairs needed to the home
This can be very effective, especially in older homes. If you agree to cover the cost of repairs identified in the home inspection up to a certain point, that takes a financial burden off the seller up front and shows that you are willing to negotiate a win-win for all parties involved.
Hopefully these tips help you win the house of your dreams! If you ever have any questions regarding the home buying process we are happy to help!