How can you compete as a buyer in such a strong seller’s market like ours? Here are seven great strategies you can use.
The market can fluctuate, but when you’re a buyer in a strong seller’s market with lots of bidding wars, you want to make sure that you’re prepared to make a strong offer. Here are some tips to help make that happen:
1. Make a large earnest money deposit. A larger deposit shows that you have the financial means to back up your offer, and it removes any doubt from the mind of the seller and their agent. Non-refundable earnest money is even stronger, but it can be a little risky depending on the circumstances.
2. Make a large down payment. When the agent sees this, you’ll look even stronger financially.
3. A pre-approval letter from a well-known local lender. National lenders are a real pain to deal with. Local lenders are much more pleasant, and listing agents are going to lean toward these offers first.
4. Accommodate the seller’s closing date. Ask them ahead of time when their ideal closing date is and match that up in your offer.
5. Write a personal letter. This has become a lot more popular over the years, and it’s another great strategy to help you stand out in the eyes of a buyer.
6. Include an accelerator clause in your offer. Put in the highest offer you’re willing to with an accelerator clause. You can even write it to exceed the next highest offer by $1,000.
7. Inspection repair limits. This is a big concern for sellers. They think you’re going to nickel and dime them, but putting in a clause that you specifically won’t ask for nitpicky repairs is smart.
If you have any other questions for me about buying a home, selling a home, or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.