Category Archives: buying home in a competitive market

Make Your Home Offer Competitive in a Seller’s Market

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for sale sign at home ready for showingOur local real estate market is hot these days, and we’re not just talking about the temperatures. The market has gotten extremely competitive, making it imperative for buyers (like you) to take extra measures that make your offer stand out in our hot seller’s market.

Minimize contingencies.

There are numerous contingencies that can be included in an offer to purchase, such as the sale of your home before the sale or a home inspection. To make your offer more attractive, put together a clean offer with a minimal number of contingencies—if you’re comfortable with the risk. Talk with your real estate agent to decide what your best offer does and doesn’t include.

Show you’re earnest.

If you want to show you’re serious about the sale, consider including earnest money in your offer. Earnest money is a deposit included with your offer that is applied to the purchase price at sale. For example, if you include an earnest money amount of $5,000 in your offer of $225,000, you will pay $220,000 at closing.

Make your offer competitive.

A seller’s market is not the time for low ball offers. Though it may be tempting, submitting numerous low ball offers can ultimately play into losing out on the property. While you’re trying to get the lowest price possible, another offer can come in that trumps anything you’ve offered. Instead, submit your best offer; ask your real estate agent to determine what a competitive price is for the property.

Lean on experience.

An experienced real estate agent can be worth their weight in gold during a seller’s market. Choose a local real estate agent that knows the area and property values. They can give you information to make sure you don’t overpay of your dream home, helps you deal with a difficult seller, and can assist you with any obstacles that come up with the sale.

Think about it—but not too long.

Be prompt throughout the process; from the initial decision to make an offer until the last communication with the seller, make sure you meet all deadlines and respond in a timely manner. It’s okay to want to sleep on a big decision, but don’t slumber too long. If you wait too long, you could lose the property.

Be careful about closing costs.

It’s normal to want closing costs paid by the seller; however, remember that while you see the offer as full price, the seller only sees the bottom line (minus the closing costs!). If you need to include closing costs, keep the amount of closing costs to a minimum or make the offer over the asking price but include closing costs. For example, if the house is listed at $150,000, submit an offer of $155,000 and ask for $5,000 in closing costs. Contact a real estate agent to determine what the right amount that makes you a home owner and satisfies the home seller in a competitive market.