Here are some ways buyers can compete in this crazy market of ours.
Today’s market is moving fast, as demand continues to outpace supply and homes sell with multiple offers. So, how do you compete as a buyer?
One of the ways you can make your offer stand out is by adjusting your contingencies. There are three main contingencies to discuss with your agent: financing, inspection, and appraisal. Sellers look at these three things to gauge a buyer’s level of interest and commitment to a deal. Generally speaking, the shorter your contingency periods are, the more competitive your offer will be.
Secondly, it’s important to work with a lender who is sensitive about time frames. Typically, a closing takes place in about 30 days, but there are ways to speed that up (if doing so would benefit the seller). If you’re working with your lender and are fully underwritten and approved for a loan, a quicker close may be possible.
Understanding the seller’s needs is also important. For example, if your offer accommodates their time frame better than every offer, it’s more likely to be selected. To find out what truly matters to a specific seller, you need to work with an agent who asks the right questions. Do they need more time? Do they need to negotiate a rent-back period? Have your agent talk to the listing agent to get a better feel for the seller’s mindset.
“Ultimately, the offer you write should depend on who the seller is and what needs they have.”
Lastly, consider including a personal letter. A real estate transaction is full of emotions, so use them to your advantage. Sellers have strong attachments to their homes, so they want to be sure that they’re dealing with a buyer who’s serious about treating the home with respect; by sharing more about you and your family and highlighting how their home would be a perfect fit for you, you can create an emotional connection that may separate your offer from the rest.
Of course, if the seller is an investor with little to no emotional attachment to the property, writing a letter would be a misplay. Ultimately, the offer you write should depend on who the seller is and what needs they have; work with your agent to get a clear read of the situation before you submit anything.
If you’re interested in learning more about how we here at Marker Real Estate can help you navigate this tough market, don’t hesitate to reach out via phone or email. We’re grateful to have already helped thousands of buyers just like you, and we look forward to hearing from you!
