How to get your Offer Accepted
in a strong Seller's Market
Getting an offer accepted in a multiple offer situation takes a bit of strategy and finesse. We've put together a list of tips & strategies we use make sure our client's offers stand out against the competition.
Amy Gerrish, Realtor
Pay the Seller's Closing Costs.
In a crazy seller's market, homes may not appraise when a buyer offers for a lot more than asking price. That's why offering to pay the seller's closing costs, along with your highest offer is usually the best combination.
All offers written on documents from the state's real estate board require a pre-approval be attached. If you are truly serious about purchasing a home reach out to a lender to get one.
There are a couple of different strategies you can use to give the seller more confidence in accepting your offer.
1) Increase your earnest money deposit - Earnest money sits in escrow and will revert back to the seller if the buyer breaches the terms of their offer. There are only 2 exceptions to this.
Exceptions during a sale in the State of Arizona that a buyer can get this money back.
2) Make your earnest money non refundable - If you are confident that the house you are buying is 'THE ONE' you can also let the seller know that you are serious by removing the 2 reasons above that allow you to get a refund. This means you are confident that your financing will be approved & you aren't worried about repairs.
The Home Inspection
We are going to start by saying:
ALWAYS GET A HOME INSPECTION.
What you do about it matters. Here are some options that seller's like to see:
Include an Escalation Clause
With this clause, you state that if another person bids higher than you, then your bid will automatically go up as well. An example of this could be that you will offer $500 more than any other bidder until a certain amount. The risk of this clause is that it shows the seller the maximum amount you’re willing to offer for the house, so don’t put more than you would want to pay.
Pay Your Own Closing Costs
Don't ask the Seller
Closing costs can vary from plus or minus $3,000 to $6,000 when purchasing a home. This amount will be a combination of the fees your lender charges along with title/escrow fees/hoa fees.
If you don't have money to cover all of these costs, ask your lender what they can do to roll in your closing costs into the loan or the concession I offer in my Buyer Benefits package.
(In highly competitive markets, it's better to use this benefit to pay the seller's closing costs.
Other strategies we use...
I always do 'Due Diligence' on on the Seller
Finding out what is most important to the seller when writing an offer always varies.
This may include finding out things like: