Four ways buyers can make their offers stand out to sellers.
In a market where many homes receive 20 or 30 offers, how can you make sure you win? In March, I was selling a house every other day, and as a result, I reviewed countless offers. I’ve noticed a few things that winning offers have in common, so I want to share my advice about them:
1. Follow the offer guidelines. Most properties will list specific guidelines in their instructions. Make sure you pay attention to these—the seller provided them for a reason. When I review offers, I have someone on my team highlight every mistake in red. If your offer has lots of red, there’s a good chance my seller won’t be interested.
“If your offer isn’t dependent on an appraisal, you can gain a big advantage.”
2. Make your highest offer upfront. In this market, you can’t expect a counteroffer. Make your best deal immediately so that the seller knows you’re serious.
3. Remove your loan and appraisal contingencies. Homes are appreciating so fast that they often don’t appraise. This creates a lot of headaches, but if your offer has no appraisal contingency, you suddenly have a big advantage over the competition. Even if you need financing, many lenders can fully underwrite you before you make an offer. This way, you can remove your contingencies and compete with cash offers.
4. Consider removing your physical contingency. Recently, one of my sellers accepted an offer $50,000 below the highest competitor because it was a done deal. They didn’t want a ton of inspections slowing down the process or putting things in jeopardy. Talk to your agent to see if this option makes sense for you.
The key takeaway is that you need to find out what the seller is looking for and give it to them. If you need help looking for a home, please call or email me. I am always willing to talk!