Houses in all price ranges are attracting multiple offers. If you are a buyer who lost a few bidding wars, this email is for you.
I will explain a strategy to avoid bidding wars and secure the property before showings even start. This strategy is risky but was successful for several of my clients.
Curb Offers without Contingencies
When a property is listed as “Coming Soon”, buyers can’t see the inside until showings officially start. The listing agent can publish photos, videos, 3D virtual tours and post disclosures on the MLS for all buyers to see.
You can submit a curb offer on a “Coming Soon” listing. If the offer is very aggressive (above list price and without any contingencies) we may be able to convince the seller to accept it before showings officially start.
A curb offer is very convenient for the seller. They don’t have to leave the house for a few days while hundreds of people schedule showings, and they don’t have to agonize over multiple, competing offers.
Warning: Do NOT Try this by Yourself!
Curb offers are risky. For a curb offer to be effective you have to waive all contingencies. You will have to offer more than a reasonable seller would expect and back it up with non-refundable earnest money.
You can’t see the inside of the house until your final walk through before closing.
It certainly takes guts and sufficient cash to submit such a curb offer.
How to Mitigate Your Risk on Curb Offers
Although a curb offer comes with a lot of unknowns, you can mitigate the risk of loss. Here’s a 5 step due diligence plan:
1. Review the listing pictures and videos. A 3D tour would be ideal. Are all rooms shown in the pictures?
2. Drive by and walk the neighborhood. Talk to neighbors if possible. The upkeep of the exterior will tell you a lot about the interior condition of the house. You will also see if the roof, windows and siding are damaged and may need to be replaced.
3. Request and read all property disclosures and reports.
4. I will communicate with the listing agent to inquire about the condition of the interior and the age of the mechanicals. Most Realtors are honest and will give us a good idea of what to expect. Listing agents who don’t communicate raise a red flag.
5. Study the transfer history to find out how often the property sold, who’s been living there, if it was a rental or a single owner property. Sometimes pictures of previous sales are available on the MLS as well.
Are Your Ready to Take the Risk?
If you are ready to submit a curb offer, I will help you with your due diligence. When you submit the curb offer it will always be contingent on seller acceptance before
Would you consider a curb offer to skirt bidding wars?
P.S. for Sellers: If you are a seller consider the benefits of an aggressive curb offer: No showings, no open houses, nobody running through your bedroom, and a firm day to close without contingencies.
