These seven tips will make your offer stand out against the competition.
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Have you or someone you know recently missed out on the ideal home because there were multiple offers? If so, I’m sharing some tips to help your offer stand out in multiple-bid situations:
- Earnest deposit. Put down a strong earnest deposit to show in good faith that you truly want that house. If you’re an FHA buyer and need to put down 3.5%, don’t just offer $500, put it down in your deposit. You’ll get credit for it at closing. If you’re a VA buyer with 100% financing, still put down a strong deposit because you’ll get it back at closing.
- Closing date. Consider what closing date is best for the seller. Have your real estate agent talk to their listing agent and find out what date works best for them so you can accommodate their needs.
- Closing costs. Do not ask the seller to pay your closing costs unless you absolutely need it. If you do need it, consider bumping up the price to cover the closing costs; that way, you’ll pay it off in your monthly payments later.
- Home warranty. Don’t ask for a home warranty; make it a clean offer. If you want a home warranty, you can buy it yourself at closing. It costs $500 to $600, and it covers you for the first year.
Have as short of a due diligence period as possible.
- Personal property. Don’t ask the seller for personal property they’re not offering. Again, make it a clean offer.
- Price. Nowadays, you can’t look back at prices from the last six to 12 months in a neighborhood because there’s so much activity, and buyers are bumping up prices. In addition to all the typical summer activity, interest rates are extremely low and many people are relocating to this area. Consider what price you feel comfortable offering for that property—it’s not uncommon for prices to be bumped up, especially during multiple-offer scenarios.
- Due diligence. Have as short of a due diligence period as possible. We used to see two weeks for due diligence, but with all the activity happening, sellers don’t want to take their home off the market for two full weeks. Maybe make it five business days from acceptance so you have time to get the inspector lined up.
If you’re a very experienced buyer, you may even consider making your offer be sold as is, contingent upon a satisfactory home inspection. You’re telling the seller you won’t be asking for repairs, but just want to know if there are any major surprises. If you’re an extremely experienced buyer, feel comfortable about the price, and are used to doing repairs yourself, you could make your offer simply sold as is.
Consider all these factors when making your offer. You want as clean of an offer as possible to make yours outshine the rest.
If you have questions about making offers or if we can help you in any way, please give us a call or send an email. My staff and I are on call seven days a week to assist you.