Today’s real estate market is still competitive for buyers. If you fall in love with a home, chances are that other buyers have seen it too and you’ll be competing against them to get your offer accepted. Even though interest rates have increased, there still aren’t enough homes to balance out our market. This gives sellers the upper hand, and buyers are often forced to compete against each other. The good news is, there are a few ways you can make your offer stand out to sellers:
Offer above the asking price. You’ll have to offer more than asking price if you want to win in a multiple-offer scenario. Although, that doesn’t mean you’ll have to bring too much more money to the table. An extra $2,000-5,000 might be enough to draw the seller’s attention. As long as you don’t offer far more than the asking price, this shouldn’t change your monthly payment that much.
Limit your inspection. Many sellers worry about deals falling apart because of issues during the inspection. But, if you waive your inspection entirely, you could be on hook for costly repairs. You can reduce your risk by reducing the inspection period or agreeing to only ask for major repairs (if any).
Cover the appraisal. With home prices rising so quickly, many homes aren’t appraising for the final sales price. Normally, the buyer and seller would negotiate to see who’s responsible for the difference. However, you can make your offer more attractive by agreeing to cover a potential appraisal gap. If you’re already fully unwritten, you can waive your appraisal contingency entirely. If not, you can offer appraisal gap coverage, which means you’ll cover any gap up to a certain amount you choose.
Be flexible. Sellers might want different things concerning the timing of their sale. You can work with the seller’s agent and either offer an extended closing or a quick closing to accommodate the seller’s needs. Doing this could help your offer stand out to the seller. To sweeten the offer even more, you can offer a leaseback agreement or post-occupancy period. This allows you to let the seller remain in their home after closing to give them time to move and/or find another home. These agreements usually last up to 60 days and can be a great way to offer the seller a flexible closing.
If you’re tired of competing, have hope. Interest rates are rising, and it looks like the competition from buyers is easing up a bit. While we still expect to see a seller’s market for a while, it may get easier to purchase a home in the coming months.
If you’d like to take a look at what’s presently available on the market or if you have questions about making your offer more competitive, or if you have questions about just buying a home, please feel free to contact Penny at (206) 618-5123 or email me at Penny@TheOriginalPenny.com. I would welcome the opportunity to help you navigate the market.
Serving: Bainbridge Island, Poulsbo, Silverdale, Kingston, Bremerton, Port Orchard, Port Ludlow and Ocean Shores.