With record low inventory, insanely low interest rates and pent up demand to move to more rural areas of the state and country, buying in this sellers market has become increasingly difficult.
In fact nearly 70 percent of buyers have been looking for three months or more without any luck and have continuously been outbid. So here are the top 5 ways to help get your offer accepted in this strong sellers market.
#1. Prove your financing ahead of time
Cash is definitely king is this type of market. But, being prequalified and knowing just how much you can offer levels the playing field just a bit. Also having a conventional loan versus an FHA or VA loan will help entice sellers with less restrictions on the property.
#2. Bring your best offer, not just your best price
Now don’t get me wrong, sellers do love getting the most equity back out of their property. But that isn’t the only thing sellers care about. Try offering a free rent back, paying the difference in appraisal shortage if any, and being flexible with close of escrow whether the seller wants a quick close or extended escrow.
#3. Make nice with the sellers
How do you do that? Have your agent contact the listing agent and find out about the sellers’ situation. Do they need longer or shorter time frames? Do they need a rent back? You would be surprised how many times buyers’ agents don’t contact the sellers’ agent and build that relationship with them. It could mean the difference in getting an accepted offer.
#4. Consider waiving or minimizing contingencies
This can be a risky decision at times, but it could make the difference. By waiving inspection contingencies, you could show the sellers you’re willing to take the home in an as-is condition. And by waiving appraisal contingencies, you would be showing the sellers you can cover the difference in appraisal out of pocket if for some reason it didn’t appraise after bidding the price up.
#5. Put more skin in the game
By putting more down on the property or increasing the earnest money deposit, you would show the sellers how interested you are in the property. But sometimes in these multiple buyers bidding wars, one of the biggest key takeaways is knowing when to walk away iif becomes too much.
Danielle Egan is a Realtor with Fathom Realty in Ramona