If you’ve been staying up to date with the Lenard Team’s Market in a Minute, or any real estate news, you know that inventory is low, making the market competitive amongst buyers. If you are looking to purchase a home, your offer needs to stand out. 

Here are five tips to make an offer in a seller’s market:

Make a Competitive Offer

This one is pretty self-explanatory. If you found the house of your dreams and know other buyers are interested, don’t go in with an offer significantly under asking price. Sometimes, sellers will even list their home low to encourage offers over-asking price. Your real estate agent will compare how much other homes in the area are worth, and help you make a competitive offer that you feel comfortable with. 

Limit Contingencies

When possible, limit the number of contingencies in your offer. Often, a contract with the fewest contingencies will be more appealing than the highest price with numerous contingencies, especially for sellers looking to move quickly. You can discuss with your realtor which contingencies are necessary for your offer. 

Add an Escalation Clause

An escalation clause increases your offer, up to a specific dollar amount, if you get outbid. Your agent will add language to the contract to ensure you are the highest bidder if there are multiple offers. This allows you to start with a strong offer and max out at the highest amount you are willing to spend. For example, you can offer $520,000 and agree to pay $1,000 more than the highest offer received by the seller, without exceeding $535,000.

Increase Your Cash Spend

Cash is still king. If you can make an all-cash offer, it will be very enticing to the seller. If your budget doesn’t allow for all-cash, don’t worry, you can still make an enticing offer by increasing the size of your down payment. A sizeable down payment shows the remaining financing will likely clear without issue. 

Accommodate Seller’s Timeline

Find out the seller’s preferences in terms of their desired closing day. When possible, accommodate their timeline. Sometimes the most attractive buyer is the one who can close the fastest. 

Working with the right real estate agent is essential for all of these things to take place. Your agent should know the language to use in contracts, how to catch the seller’s attention, and local market value. Interested in learning more? Contact us!