Aggressive is my word of the day! But, boy do I mean it with today's Summer 2020 market! I submitted an offer on a house on behalf of my dear client looking to buy his first house, and we
How To Make An Aggressive Offer In An Aggressive Market
Aggressive is my word of the day! But, boy do I mean it with today's Summer 2020 market!
I submitted an offer on a house on behalf of my dear client looking to buy his first house, and we were met with 10 other offers. Yes, TEN!!! I think that is a new record in my books. While he didn't win the house even while putting our best foot forward - we put a lot of tactics in place that didn't necessarily mean raising the price $20k that put us in the top 3 offers!
Don't get me wrong - money talks! That should probably be first in your action plan if writing a serious offer in such an intense seller's market. But there are certainly other factors that can come in to play...he are a few ideas:
1) Be Flexible! I always ask the listing agent "what is the timeline for the seller to move; is the seller looking to move quickly or do they need time" Having some flexibility for a quick, 30 day close or a longer drawn out closing schedule is going to mean a lot to the seller and their next move.
2) Go As-Is! Of course, it is important to have your home inspections. I don't think I would ever ask a buyer to accept the home without having a contingency period for home inspections. However, sellers are looking for easiness and don't want to be nickle'd and dime'd again after the home inspections. If you like the house enough to put an offer in, you may want to consider not asking the seller for any repairs. That way, you do your due diligence in having the home inspection and then move on or get out of the contract. Keep in mind, home inspection contingencies have timelines!
3) Think about your increments! So you want to put in an offer higher than the listed sales price; my best advice is to never think in $5k or $10k increments. If you want to offer $5k over sales price, go to $6k over sales price. This could beat a lot of the competition by only $1000.
4) Pull at the heartstrings! Keep in mind, we have to abide by fair house laws, so no photos, mention of race, religion, family status (etc)...but pulling at heartstrings can be a nice, simple note to say in short: "thank you for keeping up your home so well! It showed very well, and you decorated perfectly to my taste - your home has me very excited about the buying process! Thank you kindly for considering my offer." Small gestures can go a long way!
5) Local Agent, Local Lender! A local buyer's agent and local lender will go far! My reputation along with my broker/brokerage's solid reputation can certainly help. I'm not saying it is the end all to be all - but my point is that people like to work with people they know, trust and will probably see again! Not only that - but you want your team of professionals to have that local knowledge and expertise.
The market under $500k is hot! Under $350k is basically on fire! So, it's entirely possible you will lose out on a house. Hang in there! There is always a reason for the madness. The right one at the right time will always present itself - and it will work out!
Written by Kat Royer
Welcome Home Realty
Kat Royer is a graduate of Virginia Tech with a Bachelor’s degree in Hospitality and Tourism Management and minor in Real Estate. She worked for 7 years in operations and sales for a major internat....
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