Here are six tips to help buyers win in a tough seller’s market.
Are you looking to purchase a home? If so, you may already know that we’re in a strong seller’s market. Multiple-offer situations are common, and you’ll likely find yourself competing against other buyers for a property. That’s why today we want to share some tips to help you win in a seller’s market:
- Make your best offer upfront. Don’t wait for negotiations or bet on a counteroffer; one probably isn’t coming. You may want to offer above the asking price too. Many sellers price their homes below market value to create a bidding war, so offering a little extra doesn’t necessarily mean you’re overpaying.
- Submit a large earnest money deposit. Show the seller you’re serious by depositing more earnest money than usual. In our market, the earnest money deposit is typically 1% of the total price. If you double that amount, the seller might take notice.
- Use a local lender. Show the sellers you are well-qualified and get pre-approved. Have a local lender verify your employment and financial standing. They can even call the listing agent and vouch for your financial security.
- Shorten or waive some contingencies. Many homes have been pre-inspected in today’s market, so you may not have to do your own. If the house you want hasn’t been pre-inspected, shorten your inspection period to let the seller know you’re serious.
- Use an escalation clause or appraisal gap waiver. An escalation clause states you’ll raise your offers price to match any other offers up to a certain amount. Meanwhile, an appraisal gap waiver is where you make up an appraisal gap in cash up to a certain amount.
- Give the seller more time to move. Possession is often a sticking point. Cut the seller some slack by giving them a few days to move out after closing without expecting compensation. This is an underutilized strategy, and it could put your offer over the edge.
If you have questions about today’s topic or anything else, please call or email us. We are always willing to help!