More and more buyers are getting back into the market now that spring is here, making the competition tougher.
You need more than just a wish list to really find a home that you are going to love. You need a smart plan, and the first step is to work with a great agent who can help you make a strong offer.
In today’s market, these are the best tips that your agent will give you that will help you stand out and win.
1. Don’t Lowball on Price
To try to save money, it’s tempting to start with a really low offer. But that might not work in a spring market that is very competitive. You might upset the seller if the price is too high, and then someone else might win the bid. It comes from NerdWallet:
“If you really want the house, don’t say anything that will upset the seller.” So, don’t make what’s called a “lowball” offer. One of the most obvious risks of making a low offer is that it will be turned down outright. To buy something, you’ll need to find a good balance between making a good offer and losing the house.
As the season changes, your agent can help you figure out what a fair but strong offer looks like.
2. Consider an Escalation Clause
An escalation clause can help you if you’re worried about bids that are too high. You can make your offer higher if the seller gets another offer, but only up to a certain amount that you set. That way, a small difference won’t cost you anything. This is how Investopedia describes it:
“To get ahead of other bids, an escalation clause lets you raise your bid automatically by a certain amount of money, up to a certain limit.”
Talk to your agent about this strategy to see if it works for you and your budget. Just make sure that the amount you offer is closer to what you can really afford to pay and what the home is likely to list for.
It’s possible that you’ll have to pay the difference between your offer and the appraisal. Your agent can help you think about these risks and figure out what the best thing to do is in your case.
3. Be Intentional About the Concessions You Ask For
Some concessions, like helping with closing costs, might be possible, but if you ask for too many things, another buyer’s offer that is cleaner might look better. This is what the National Association of Realtors (NAR) says:
“In any real estate deal, there are a lot of things to talk about, from the price to the repairs to the date of possession.” When you work with a real estate agent, they will look at the deal from your point of view and help you negotiate a deal that meets your needs.
You should talk to an agent who knows what works for other buyers in your area. They can help you figure out what questions are the most important and which ones might turn off the seller.
4. Consider a Timeline That Appeals to the Seller
Sometimes it’s not just about price; the time is also important. Does the seller need more time to leave? Or do they need to move quickly? Being open to change can help you here. If you can change your timeline, it might help your offer stand out from others. Atlas Van Lines says the following:
“Everyone will have a different schedule because it will depend on how far they are moving, how big their move is, and their own personal preferences.” It is important to be able to change the schedule as needed and make sure that each step has enough time.
Your agent can talk to the seller’s agent to find out what’s most important, such as when the deal needs to be done.
Bottom Line
Now that it’s spring, there are more buyers in the market. Get help from a real estate agent in the area to make sure your offer stands out.