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A great home in pristine condition may get
scooped up hours after being listed. So when competition is fierce,
you need to make your offer stand out from your competitors' offers.
To increase the likelihood that a seller accepts your offer,
consider adopting one or more of these strategies:
Price.
Obviously, price tends to be the primary consideration for sellers.
In a hot market, when buyers outnumber inventory, offers often come
in at full price or above. When you're competing for a home, to get
an edge, think about adding a clause stating that you will beat the
highest offer by "x" dollars up to "x" amount.
Cash offers can be more attractive to sellers as well. Although
sellers will receive their money at closing whether buyers pay with
cash or take out a loan, cash offers don't require lender approval.
And loan approval is never a certainty—it may delay closing.
Financing.
It's not enough to be pre-qualified. Pre-qualification only tells
how much you can afford. Pre-approval goes a step further. Your
lender will thoroughly evaluate your application—including
verifying employment information and financial disposition—then
clear you for a loan of a determined amount. Having your loan
pre-approved gives you a sizeable advantage by putting you on equal
footing with cash buyers.
Good
Faith Deposit. Buyers offering a larger-than-customary amount of
"earnest money," a deposit that accompanies an offer, may
get a seller's attention. By committing more money up front, buyers
demonstrate greater sincerity and motivation to close the
transaction. Your real estate professional can guide you as to the
appropriate sum for your specific transaction.
Contingencies.
Consider minimizing contingencies, those clauses that allow buyers
to back out of a contract if certain conditions are not met. For
example, it's common for buyers to make the purchase contingent upon
their securing satisfactory financing. Obviously, offers with the
fewest conditions tend to be more attractive to sellers.
From
a contingency standpoint, first-time buyers are often better
prospects for a seller's home than move-up buyers. Here's why: Very
often, buyers' offers are contingent upon the sale of their present
home. Even if a move-up buyer has an offer in hand, that buyer's
offer may be contingent on another contingency, and so on down the
line. If one transaction derails, they all might.
Relationship.
Help the seller get to know and identify with you by looking for
ways to connect. For instance, it may be through a shared
appreciation of a certain style of architecture. Let's say that
you're fortunate enough to find yourself competing for an original
Frank Lloyd Wright-designed home. After hearing about your visit to
Taliesin West, Wright's desert home, and your collection of
Wright-inspired furniture, the seller might be persuaded that you
should be the next custodian of this national treasure. Of course,
the connection could be something more conventional such as a shared
love of gardening. You'll want to persuade the seller that his prize
roses will be well tended.
Naturally,
sellers would like to receive top dollar for their home, but
remember, they also want an easy, trouble-free transaction. Thus, as
a rule, the fewer the contingencies and the greater the commitment,
the more attractive your offer may look.
If you have questions about this or any other
home buying or selling subject, confer with the real estate
professionals who can help provide you with more detail…
We
can be reached at (310) 265-2130
Prudential California Realty is an independently owned and operated
member
|of The Prudential Real Estate Affiliates, Inc., a Prudential
Financial company.
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