The Challenge of Buying a Home in a Sellers Market
In many areas, the current real estate market favors sellers, as there are more buyers than homes for sale. This gives the seller an advantage in the transaction and many buyers find their offers being rejected amidst the competition. To get the house you want, try these helpful tips to get your offer accepted.
Large Down Payment
If you have the funds to make a large down payment, do so. This shows the seller that you are a financially secure buyer, which will increase the likelihood of closing the transaction.
Cash Offers Will Get Your Offer Accepted
Sellers prefer buyers who can pay cash over those who need a loan from a financial institution. With cash, there is no risk of financing falling through. Paying with cash can speed up the time it takes to close, as there will be no delays waiting on the lender to provide the funds.
Submit an Escalation Clause
An escalation clause states that the buyer will increase their offer above the highest price offered by other potential buyers. When you include an escalation clause, your offer is automatically increased without the need to resubmit a new contract or amend the existing one.
In the event of a bidding war, this keeps your offer at the top of the list. If you want to get your offer accepted, an escalation clause can help you achieve this goal.
Earnest money is a way of showing the seller that you are serious about purchasing the house. Generally, the earnest money is between 1% to 2% of the selling price, but offering more and waiving contingencies will prove your intent to buy and makes your offer more attractive.
Get Your Offer Accepted by Paying the Sellers’ Moving Expenses
If you’re making an offer on an occupied house, you might offer to pay for the seller’s moving expenses. When you cover the moving expenses, the seller receives an extra financial benefit that is not a part of the sale price. This bonus could tip the scales in your favor.
Close on the Seller’s Terms to Get Your Offer Accepted
Find out from the seller what they would like the contract to include. If they will share this information, you can offer exactly what they want. This makes it more likely for you to get your offer accepted because you’ll include what the seller needs to close on the house.
The real estate market can be extremely competitive, however, these tips give you an advantage over other buyers making offers on the same property.