In today's market, when buying a home, you're opponent is not the seller, it's all the other buyer's jockeying for the very few homes available. If you want your offer accepted here are three ways to make it stand out.
1) Work with the Best
It goes without saying that if you're working with high quality professionals, you're more likely to get the outcome you want and deserve. Professionals know how to get the job done while preserving your best interests. A hardworking and well respected Realtor will know how to craft, present and negotiate your offer and make it stand out. A proactive lender will not only have you pre-qualified, but will also advise you on which loan programs will make your offer more acceptable than others. A great team of professionals will make you and your offer look great.
2) Convince them til Closing
Knowing what can go wrong from offer to closing can help you craft your offer in a way that is more appealing than your competition. Low appraisals, inspection issues and loan approval are the three biggest hold-ups that can kill a deal. To beat the possibility of a low appraisal, submit your offer based on neighborhood comparables and add them to your offer. You won't have control over the final appraisal figure, but knowing that you aren't drastically overpaying will assure both parties that the appraisal won't be an issue. To cover the inspection issues, decrease your contingency periods. I still suggest doing normal due diligence and inspection, however, tighten those periods so if you do have to back out, your seller will only have the home off the market for a short period of time. To combat a loan approval issue, make sure you are fully qualified with your lender and have your pre-approval letter ready to go. The more down payment you're able to bring to the table will make you look financially stable and in a better position compared to other buyers. Being proactive is the best way to make your offer stand out.
3) Put Your Money Where Your Mouth Is
If you truly want the home, put your money where your mouth is, and pay full price or even above asking price. If you can justify it (using comparables - see #2) then pay what you can. There are plenty of buyers out there who find a perfect home, then put in a low-ball offer just to see it get rejected. This isn't a low-ball market anymore and buyers need to understand that. The more skin you can put in the game, the better the chances are of getting an offer accepted.
It's a tough market out there for buyers. If you want a winner on your team who can get the job done and beat other offers, call me today so I can get to work taking down your competition.
What is the market like in your part of town? If you're a buyer, have you seen the increased competition for homes, even missing out on a few? Sellers - have you seen multiple offers on your home? Let me hear from you!
Jared Reimer is a real estate expert at Prudential Rocky Mountain Realtors in Northern Colorado. Real estate is his passion and he always wants to connect with like-minded and savvy real estate fans. For more information or to get in touch with Jared, please visit his website at www.ReimerRE.com or email him at JaredReimer@ReimerRE.com