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How do I make a competitive offer when buying a home in a seller’s market?

When you are buying in a sellers’ market, we get it, it’s tough. But, we are here with you to help structure an incredibly competitive offer when you find that home of your dreams! Here are some things to keep in mind:

  1.   Offer a Competitive Purchase Price

You don’t always need to be the top offer price-wise, but you need to be in the ballpark.

  1. Secure Good Financing

Cash is king, and an all cash offer is the most ideal – followed by a conventional loan, then an FHA loan, and then a VA loan. Generally a seller wants to see that you have a good mortgage company and loan officer behind you and a good loan that involves the fewest contingencies and least amount of headaches for everyone involved. They don’t want this deal to fall through due to financing just as much you as do!

  1. Set a Timeframe that Makes Sense for the Seller

Sometimes you need to move in by a certain date and you may not be able to adjust this, but your agent should talk with the listing agent and know what the seller’s ideal time frame is, to ensure you can get as close as possible.

  1. Minimize Contingencies

Any offer you make is contingent upon many things – such as an inspection, appraisal and securing a loan. Some buyers might also need to make their offer contingent upon the sale of their current home. We want to make as few as contingencies as possible while protecting your purchase and meeting your needs.

  1. Non-Traditional Options

We do not necessarily recommend these options, but they may come up in multiple offer situations, so they are important to be aware of:

  • Waive appraisal contingency or guarantee money above appraisal
  • Waive inspection or agree to a limited-scope inspection
  • Offer a post-occupancy agreement for seller
  1. Sell Yourself

Ensure the listing agent and sellers know why you are the best candidate for their property. We find it most effective to have our agent write about you and your situation, or for you to provide a letter yourselves, for us to submit to the listing agent along with your offer.

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