Today, the real estate market is competitive in most places. Inventory is low and many people are in the position to buy a new home. Because of this, you’ll need to make a strategic offer if you want it to be accepted by the seller. Here are 6 ways to get your offer accepted in a seller’s market.
Make a Clean Offer
Especially when sellers receive multiple offers, they appreciate it when the offer is clean and uncomplicated. Avoid asking for additional belongings on the property unless they are specifically listed as for sale. Use straightforward language and only include contingencies that are considered standard in real estate transactions.
Offer More Than the Asking Price
Money talks in almost all situations, including real estate offers. When a seller receives multiple offers on their home, it is common for them to choose the highest one. It can be to your advantage to offer more than the asking price if you are able to. Your offer will stand out among the others if it is the highest.
Up the Earnest Cash to Get Your Offer Accepted
Earnest cash is an initial deposit that you won’t get back if the deal falls through. If you feel fairly confident about the property, offer a higher percentage of earnest money upfront. 1-3% of the total price is a standard earnest deposit. It counts towards the total price of the home, so as long as the transaction goes as planned you won’t lose any money.
Get Your Offer Accepted With an Escalation Clause
An escalation clause means that you will match any higher offers up to a certain price. Be prepared to pay more than the asking price for the home if you include this clause in the offer.
Waive the Appraisal Contingency
If you are getting a mortgage to finance the home purchase but also have a large chunk of savings, you may be able to waive the appraisal contingency. This means that if there is a gap between what the home appraises for and the asking price, you are still bound to the contract and must come up with the cash difference. Sellers find this appealing because they know you don’t have to rely on an external financial institution for the entire amount.
Offer a Large Downpayment
Offering a large downpayment is another strategy to get your offer accepted over other offers. The standard downpayment is 20% of the total home price, but if you can afford to put down more, your offer will be more appealing. Of course, sellers would most like to have a complete cash offer, but if that isn’t possible, up the downpayment.