Today’s housing market is super competitive and many home buyers are not ready to compete. Listings in the mid-price ranges are hard to find in most Columbus suburbs. If a new listing pops up, it often goes in contract within a few days receiving multiple offers.
New home buyers are losing out in today’s market, because their agents don’t prepare them to WIN.
When I write offers for my buyers, they are ready to win. As a matter of fact, my home buyers win their purchase offers 90% of the time.
Why Buyers Lose Out
The main reason why buyers lose out in a multiple offer situation is a lack of funds.
When you are competing against other buyers you will probably have to bid above list price, you can’t request closing costs, you may have to buy the property “as-is”, you may have to wave the appraisal contingency, you may even have to include an escalation clause (matching other offers up to a certain amount), and you’ll need a conventional loan approval which requires at least 5% down.
All of that requires CASH.
Sellers will select the offer that’s best for them, not necessarily the highest purchase price. The best offer is usually the one that’s most likely to close without any hassles.
How to Make Your Offer More Attractive
There are many ways to make your offer more attractive to the seller.
Here are just a few of the strategies I use to help my clients win:
- Before I submit an offer, I always try to find out what’s most important for the seller. It may be money, but it may be a specific closing date or staying in the house a few days after closing to manage the move.
- We avoid contingencies that could derail the contract. There are 2 major reasons why contracts don’t close in today’s market: home inspections and low appraisals. If you buy a property “as-is” you can still do a home inspection, but you won’t bother the seller with remedies. If your offer is not contingent on an appraisal, and you are prepared to pay the difference if the appraisal comes in low, the seller will feel more comfortable.
- Pick a lender with a good reputation. Some lenders are notorious for delaying closings by days, even weeks. The seller’s agent knows who they are and will recommend the seller accept a contract with a lender who’s underwriting locally. FHA and VA loans are not a good choice, because borrowers often request closing costs and appraisal tend to be conservative (low).