By Living Room Realty, August 5, 2021
Just Listed! aaand…it’s already pending??
If it seems like great homes are sold as soon they hit the market, you’re right. But here are three tips to getting your offer accepted:
1) Increase the offer price and consider a higher down payment
Higher down payments and cash buyers have an edge in seller’s markets because the sellers appreciate the increased likelihood that the buyers can finance the deal. A higher down payment could tip the scales in your favor. If you can’t increase the cash available to put down, you may need to increase the offer price.
2) Waive Contingencies:
To make your offer more attractive, take out as many sticking points as you’re comfortable with. This means removing contingencies for a clean offer.
Common contingencies include:
- A home sale contingency: This makes the deal contingent on the sale of the buyer’s current home. In a hot seller’s market, there’s no need to include this contingency because the buyer’s current home will likely sell quickly anyway.
- An appraisal contingency: This contingency requires the property to appraise for an amount equal or greater to the offer. To waive this contingency, the buyer needs to be willing to pay the difference between the appraisal amount and the offer price out-of-pocket if the appraisal comes in low.
- A financing contingency: If you have the funds to make an all-cash offer, you can waive this contingency.
- An inspection contingency: It’s risky to waive the inspection contingency, but some buyers are getting around this by having an inspector attend home showings to complete a quick on-site inspection so the buyers can waive the formal inspection contingency.
3) Get creative with the offer terms:
If offering a higher price and waiving contingencies isn’t enough, you might be able to get your offer accepted with creative terms.
Consider what the sellers might want. Price is not the only factor sellers consider – being flexible with closing and possession dates might be more valuable to some sellers than an inflated price. Speak with your agent to see if you can uncover the seller’s motivations, then write your offer accordingly.
