Prior to offering, work with your real estate agent to determine which contingencies you’re willing to waive. If you find yourself in a multiple-offer situation - which, let's face it, in this market you most likely will - any compromises you’re willing and able to make will help put you in a stronger position than your competitors. For example, discuss with your REALTOR® concessions you'd be willing to make regarding inspection results, various requested repairs, included items at the house, closing time frames, etc.
2. Rent-Back Agreement
In today's market, sellers who are looking to purchase another home after selling are having an increasingly difficult time finding a new place due to such shockingly low inventory. Work with your REALTOR® to discuss whether you could offer the seller the option to temporarily rent back their home after closing. Providing this option will allow the sellers to avoid the stress of being rushed into find new living accommodations, which could ultimately make your offer stand out and win you the deal. It’s all about finding out what the Sellers need most!
3. Pre-Approval and Proof of Funds
Ensure you are financially prepared beyond your mortgage pre-approval letter. Take some time to really think through any credit or financial issues that could potentially cause delays. If using financing, we highly encourage that you use a reputable local lender. If using cash, please ensure you have the proof of funds ready to go with your offer!
4. Escalation Clause
In hot real estate markets, it is not uncommon for a seller to get multiple offers for a home. While this occurrence is obviously exciting for the seller, it can understandably become frustrating for the potential buyer. Adding an escalation clause to your offer agreement that clearly outlines that you are willing to outbid any other offers on a home by a certain amount, up to a ceiling price point, could be a game changer. This method is appealing to sellers because it streamlines the paperwork and the decision-making process, thereby reducing overall back and forth negotiations (and incurred stress) on both ends.
Stellar communication between you and your real estate agent is a key ingredient for success in any market environment. In a hot seller’s market, this fact only becomes more relevant. When selecting your agent, ensure that he or she is:
- In direct communication with the listing agent through the offering process.
- Excellent at identifying the seller’s primary motivation and needs.
- Recognized as a top agent and proven negotiator in the market.
- Maintains great relationships with agents across the valley.
As a buyer, in a Seller’s market, it’s 100% normal to feel slightly intimidated and (at times) frustrated. The key is to get all your ducks in a row with a savvy agent and then to act quickly!
Ready to go? Contact me todayto get started locating (and “winning”) your dream home.