Many real estate markets are still on the rise. With stable inventory coupled with growing demand home prices are not going down any time soon. As a buyer in these markets, it can be frustrating trying to get your offer accepted. You don’t want to offer more than you think is fair but you can’t keep watching properties fall by the wayside. Instead of offering full price, or even over it, there are other things you can do that will make your offer attractive. You can tempt sellers with how the contract is written, your desire to close and the earnest money deposit amount. If all other things are equal these will give your offer a distinct advantage over the competition. Here are four things you can do that will help get your offer accepted.
Increase Earnest Money Deposit (EMD) Amount. It is important that you make your offer as attractive as possible. If you aren’t going to increase your price you need to do the little things to help it stand out. The first thing you should do is increase the amount of EMD. Sellers want to know that you really want the property and are vested in the purchase. By increasing the deposit you show the seller you are serious. You can even have a clause that if you aren’t approved, or close, by a certain date they can keep a portion of the money. The more skin in the game you have the stronger your offer looks.
Shorter Closing Time.The most important factor for any offer is the ability to close. A strong offer is great but if it doesn’t close, the seller is right back to square one. The shorter the closing contingency the more likely the deal will close. There is less time for something to pop up that will derail the transaction. Closing quicker often means having your ducks in a row prior to making an offer. There loan options that allow you to submit the package without a contract on the property. This can shave as much as three weeks off the time frame and allow you to close under 30 days.
Reduced Contingencies.You want to make it as easy as possible for the seller to say yes. The more contingencies you have the more likely a seller will look in another direction. You should always protect yourself with an inspection contingency but prepare to do it as soon as possible after your offer is accepted. Your mortgage contingency should only be a few weeks after the acceptance date. This allows the seller to move on if they think you are dragging your feet. If you really want the property these are just some of the concessions you need to make.
As Is. With an in-demand property you do not have the leverage to ask for items to be changed or replaced. If you start asking for the stove to be removed or items in the garage to be left the seller will quickly move on. You need to accept that they property will be sold as is. Any changes you want to make will be done by you after the closing.
Price is always important for a seller, but it may not be the most important thing. These four items coupled with a strong price will give your offer serious consideration.