There’s no question that the housing market is hot right now and while it might be a dream for sellers, buying a home in a multiple offer market can be stressful. There’s a lot of competition out there and when you combine competition with low inventory, you may be up against many eager buyers.
How can you make your offer rise to the top? Let’s look at a few ways you can stand out in a multiple offer situation.
Write your best offer
This may seem like a no brainer, but bringing your best offer to the table immediately is key to winning your dream home. In a slower market there is more room for negotiation, but in a hot market you don’t want to wait to put your best foot forward. You may not get another chance to submit a second offer.
Your agent can help you by providing a comparative market analysis and together you can determine a competitive price that makes sense. Your agent is your secret weapon to coming out on top!
Sell your existing home first
While not always possible, if your offer isn’t contingent on the sale of your current home, you’ll automatically have the advantage over an offer contingent on a home sale. Sellers will gravitate to an offer without a contingency.
Find out what is important to the seller
Ask your agent and find out what is important to the seller. Maybe it’s a fast closing. Maybe it’s a longer escrow period. Find out what will seal the deal, and include it in your offer if it is within reason.
Shorten or waive some contingencies or deadlines
There’s nothing more off-putting about an offer than a long list of contingencies. In a multiple offer market, it may help you rise to the top if you are able to shorten or waive some of the usual contingencies. Consider shortening the time period for an inspection if you are certain you can get it done faster. Your agent will help you navigate this part of your offer and help you determine what’s best.
You may consider shortening or waiving these deadlines:
Provide a lender pre-approval letter
While lender letters typically accompany any offer, take it one step further and ask your lender to give you a loan pre-approval letter you can attach to your offer. It is a step above being pre-qualified and will set you apart from other offers.
Submit a large earnest money deposit
Many sellers are worried that once they accept an offer, the buyer will back out and other potential buyers will have disappeared. One way to give the seller some peace of mind is to offer a larger earnest money deposit so they know you are serious about closing on the home. This may prevent the seller from wanting to put a clause in that allows them to continue to accept back-up offers.
Give more than you get
Don’t ask the seller for items that aren’t included in the listing. You may also want to offer to pay for items typically covered by the seller. Some of those costs might include:
- HOA transfer fees or special assessments
- No Home Warranty
- Seller’s Title Policy
- Escrow Fees
- Transfer Fees
Work closely with your agent to be sure you are still getting the best deal. The right professional will always keep your best interest in mind no matter what.