How to Get an Offer Accepted in a Competitive Market
What sellers are actually looking for
We're in an incredibly competitive housing market right now. So set yourself up for success and craft a winning offer using these must-have strategies.
More of a reader? Catch the video transcript below!
Today, I want to talk to you about how to get an offer accepted in a competitive environment.
With the current state of the market, interest rates have been on the rise, leading to a surge of buyers rushing to make offers before rates go higher. The supply side is increasing, but there's still an imbalance between supply and demand, resulting in multiple offers on each home.
So, let's dive into some strategies to help you stand out and increase your chances of having your offer accepted.
1. Offer More Money
Every year, a survey of sellers reveals that their top two priorities in an offer are money and certainty of sale.
Offering more money than the asking price can make your offer more attractive to sellers. While being aggressive, ensure the offer fits your budget and risk tolerance. Work closely with your agent to craft an offer that makes sense for you while still appealing to the seller.
2. Increase Earnest Money Deposit
Consider increasing the earnest money deposit or escrow deposit. This deposit represents your commitment to the purchase and demonstrates to the seller that you are serious about the transaction. A higher earnest money deposit shows strength and a greater interest in completing the deal.
3. Increase Down Payment
A higher down payment can create a sense of certainty for the seller. It signals that you have more cash available and are better equipped to handle any potential changes or fluctuations in the deal. Perceptions matter, and having a larger down payment can increase the seller's confidence in your ability to close the transaction smoothly.
4. Eliminate Contingencies
Limiting or eliminating contingencies in your offer can make it more appealing to sellers. Contingencies give buyers the option to back out of the deal under certain circumstances, which can be concerning for sellers.
If you can get pre-approved for your loan or conduct inspections before making the offer, it shows the seller that you are committed to the purchase and decreases the chances of any disruptions in the deal.
Pro Tip of the Day
Build Rapport with the Listing Agent: Your agent's ability to build rapport with the listing agent can play a significant role in getting your offer accepted. A listing agent wants to guide their seller to work with buyers who are solid and likely to close the deal. When your agent establishes trust and credibility with the listing agent, it can increase your chances of winning the bid.
Find Common Ground with the Seller: Take note of the personal touches in the seller's home during showings. If you can identify common interests or connections, it can help you build rapport when communicating with the seller or the listing agent. Establishing a human connection can make your offer more appealing on a personal level.
So, that’s going to be it for me today, guys. Remember to subscribe, put the bells on, and like the video. Shoot us your comments and feedback; we’d love to hear it. We’ll see you next time.
