Here are four tips to help buyers navigate our ongoing seller’s market.
Sometimes buyers wonder if it’s even worth it to try to compete in a seller’s market because when there’s very little inventory available, it’s not unusual for sellers to receive five to 10 offers. However, it’s almost always a good idea to write an offer anyway. Here are four of my best tips for buyers navigating the current seller’s market:
1. Submit a large earnest money deposit. Sometimes pending home sales don’t go through, and many sellers are worried that when they commit to an offer, the winning buyer will back out or default on the contract after the other buyers have moved on to other homes. Earnest money is part of your down payment, and by offering a little more, you’re showing the seller that you’re serious about closing. You’re only offering a bit more money sooner rather than later, but it speaks volumes.
2. Get pre-approved. Almost every offer will be accompanied by a lender letter. To stand out, ask your lender for a pre-approval letter, which is different from a pre-qualification letter. Getting pre-approved makes you a stronger buyer in the seller’s eyes.
Offer your highest price and make your offer extremely attractive upfront.
3. Give the seller time to move. Buyer possession is often a tricky point in negotiations. It’s difficult to juggle multiple closings if you’re buying and selling simultaneously and even more challenging if the sellers are doing the same. Cut the seller some slack by giving them two or three days to move out without expecting any compensation.
4. Write your best offer. Don’t hope for negotiations; offer your highest price and make your offer extremely attractive upfront. Maybe even offer a bit above list price; ask your real estate agent for a CMA to determine pricing, but sometimes sellers deliberately set their price below comparable sales to generate multiple offers. So paying a little extra doesn’t necessarily mean you’re overpaying or paying above market value.
As always, if you have any questions about buying or selling in the present real estate market or suggestions for a topic you’d like me to cover in a future blog, give me a call or send an email. I look forward to speaking with you.
