I’m sure you’ve seen it in the news that inventory is at a record low. With that comes high competition for homes that are available on the market. We’ve had over 100 showings on one home for sale. This year we’ve had 18 offers on one of our listings. When you search for homes for sale in a neighborhood and only one home pops up… it becomes a challenge to get your offer accepted as a buyer as there are multiple people interested in purchasing the home. So, I thought I’d give you some insider tips to getting your offer accepted in a tight real estate market.
1. Make sure your agent is doing an evaluation on the home that doesn’t just factor in sold comps. Historical data will leave your offer “in the dust” in this market. You have to factor in the current market trends. (If only we could get all appraisers to do the same thing…that’s a whole other story. ) Make an offer accordingly. The list price is just a starting point. Sometimes it’s too high, right on, or too low. But you have to know the market to determine actual value.
2. In multiple offers, shorten the inspection contingency period. Most are 10 days, try shortening it between 5-7 days. This will relieve the seller as there will be less days for them to stress out about the deal falling apart and having their home off the market.
3. An escalation clause can also help to not only save you money, but get you the property if you were off by a few thousand dollars in your initial thinking. Simply put, an escalation clause states that you will pay $x over the next highest offer up to a certain price. If the next highest offer was under your cap amount then you saved some money rather than just offering your “cap” amount.” This isn’t fail safe as I have had offers on my listings that came in over the cap amount of the buyer with an escalation clause. So, you still have to be diligent in your effort to assess the proper value of the home.
Check out my blog at www.traviserickson.com for more info or contact us for a free consultation. Have an amazing day! – Travis
