I can remember 2004, 2005, and 2006 when there were multiple offers and I would be sitting in front of my computer waiting for a property to come on the market so that Icould send it to my clients. Everything was selling for over asking and it was out of control. Well guess what, those days are back! At least here in San Diego!
As a buyer in this type of market, there are some tips to increase your chances of getting your offer accepted. You have to remember, we are in an extreme sellers market so the sellers have the upper hand and it’s best to think like a seller when submitting an offer. For most sellers, the bottom line in terms of profit is the #1 thing they are concerned with. There are still some sellers that will accept on emotion, however they are becoming rare.
Let’s look at a few ways to face lift your offer.
1. Put your best foot forward. There is no time for games or negotiations. If you are making an offer on a home, make it your highest and cleanest offer. If you try to start low and negotiate, your offer may not even get considered. With multiple offers, seller’s typically look at the 2-3 highest and best and work with those. If you want a shot at the home, go for it!
2. Keep it clean. Try not to ask the seller to pay for items you can live with. Save enough money to pay for your own closing costs. Evey dollar you ask the seller to pay, it taken directly away from their bottom line. If possible, don’t ask for termite clearance. You can have your own report done by a licensed termite inspector for about $50-475. If the report comes back and the home is falling apart, you can always cancel. If the costs are doable, you can budget to have the work completed on your own dime. Sellers don’t want to have to deal with the home being tented or worked on, especially when they are living in it which is usually the case. DO NOT ask for a home warranty if you don’t have to. If you really want a home warranty, buy one yourself. They cost roughly $350-$450 which is not worth losing a deal over. Again, keep your offer as clean as possible!
3. Shorten contingency periods. Talk to your lender and ask him to have your loan underwritten and ready to close as soon as possible. At a minimum be in a position to remove all loan and appraisal contingencies as soon as possible or have none at all. Sellers want to know if you are going to perform or back out as soon as possible so they can move on to the next buyer. IT also shows a higher level of commitment to the seller when you are willing to shorten your contingency periods. Have your physical inspection done within the next within the first week of the offer acceptance. This way you can see the physical condition of the property and negotiate any repairs as soon as possible and remove inspection contingency. Again, work with your Realtor and coordinate so you can remove all contingencies AS SOON AS POSSIBLE!
4. Tug at the heart strings. When the sellers are traditional sellers, meaning they are not investors looking to make as much money as possible and don’t make decisions based on emotion, it is very wise to write a cover letter and explain why you or you and your family want this home. Include a story that sellers could possibly relate too. I have seen this particular tip work wonders and be the deciding factor in getting an offer accepted.
5. Choose an aggressive Realtor that knows the market. This can be one of the most important ones. Having a Realtor that is known in the market for getting deals done and having relationships within the area makes a huge difference. Realtors want to work with other Realtors they know are easy to work with and get deals done. Do your research on the Realtor you choose to represent you. An easy way is to Google their name and see how they come across on the Internet. Read their recommendations from past clients. Check their ratings and make sure you are comfortable!
There you go! These are some tried and successful tips that will increase your chances of gettig your offer accepted. There is no sure proof way of getting your offer accepted, however there is some ways to better your chances!
If you have any questions or