Home buyers are facing a touch market today, while it is a great time to be a seller. When properties are priced right and show well they will have 5-35 competing offers.
Buyers need to be ready to compete and be competitive as much as they can, even when submitting a fabulous offer buyers could still lose.
Start by offering your best and final offer. Many times there is no other chance to put your best forward. Consider using an escalation clause that automictically increases your offer by an amount over the highest offer.
Home inspections: Not a fan of waiving this contingency, take your time in this decision. Consider a home inspection with the right to void vs a home inspection with the right to ask for repairs. If planning to waive the home inspection take a good look around the house, spend more time looking for maintenance issues or neglect. Purchase a home warranty to cover some items in the home in case something breaks down after settlement.
Seller rent back, post occupancy: Offer the seller to stay in the home rent free for 2-8 weeks, , put a security deposit into the agreement. If needed, this can be very helpful and appealing to a seller.
Financing: There are many cash offers out there and when up against a cash offer there is not much you can do. When financing, having your financing in the best possible position will extremely help. Take your preapproval loan status to a conditional commitment status. This means the bank has committed to loaning you the money all that needs to be approved now is the appraisal and title of the home. This will make you stand out when up against another who has only been preapproved.
Closing date: If you have a commitment to loan approval as stated above you can offer a faster closing date which may be appealing to a seller over another offer.
Appraisal: You can choose to waive the appraisal or guarantee a specific amount over appraisal, if the appraised value comes in lower than your offer, you need to have the funds to cover the difference.
Waiving contingencies always adds a risk, weigh all your options, ask me all the questions you have to ensure you make the best decision when making an offer on a home.
All the best, Lisa Joy