In today’s extremely competitive Seller’s market, Buyers need to go above and beyond when submitting an offer. Our team curated a list of out-of-the-box strategies to help clients stand out so we don’t lose their dream home in a sea of competitive Buyers!
Buying Power Strategies – This is a comprehensive list of what Buyers can do to help make their offer stands out when in a multiple offer situation. It’s all about getting creative and making the offer stand out the most to a Seller. One does not need to do everything on the list, but the more one does, the more their offer could potentially stand out.
● Offer over the listing price
● Escalation clause – where Buyers agree to purchase the home for x amount of money
over the highest net offer, with a cap price at y. Typically people offer $1,500-$5,000
over the highest net offer, and make the cap at the top of the market value range
● Appraisal guarantee – offer to the Sellers that you will pay x amount over the
appraised value, with a cap at y. Meaning, the Buyers pay a certain amount of the
difference between the appraised value and the purchase price, only if the appraised
value is less than the purchase price
● Large earnest money deposit – utilize the money you already have
● Shortened timeline – for an inspection period, financing contingency, and closing
● Have the lender reach out to the listing agent, and make sure the pre-approval has
already been reviewed by underwriting
● Loan guarantee to the Seller, from the Loan Officer & Lender
● Choose a Conventional loan versus an FHA or VA loan if at all possible
● Higher down payment if possible
● Give the Seller free occupancy for 30 days after closing, homeowners insurance for the
new owner and renters insurance for the previous owner would be advised
● Eliminate the inspection
● Have an inspection only for informational purposes – still have the right to get an
inspection, but no inspection contingency
● Communicate to the Sellers that if any issues come up, we will only ask to negotiate
about items costing over a certain dollar amount, and ONLY major health and safety
concerns that any Buyer would bring up
● If FHA or VA, cover the cost of repairs if any come up during the appraisal phase
● Pay cash if possible, then take out a mortgage after closing
● Assume the City required repairs, if any
● Letter to the Seller – tell them what you love about the house
● Schedule the inspection before the offer is accepted
● If the home is vacant, tell the Seller that you will hire a company to complete the lawn
care or snow removal, from the time the offer is accepted, to the time we close
● Pay the Seller’s closing costs or some of them – some examples are the Buyers agent
commission, transfer taxes, or title service fee
● Per diem penalty – if for some reason the deal does not close on the agreed-upon
closing date, pay the seller $$/day until the new closing date, for example, $100/day (we
only say this if we are extremely confident we can hit the agreed-upon closing day
● If you need to sell your home in order to buy a new home, consider the option of
obtaining a Bridge/temporary Loan so you don’t need to make an offer contingent
upon selling your current home
If you are considering buying a home in 2021, our team can help you navigate today’s incredibly competitive market. I advise you to read our client success stories and see how hard we work for our clients!
Let’s set a meeting and get you into the home you deserve!