Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home.
Today I want to bring a very important point that relates to the sale of your home, Study Shows Home Prices 5 Ways To Get Your Offer Accepted in the Middle of a Housing Bidding War
Many rejected home buyers are finding lots of difficulties getting offers accepted by sellers.
In this market, when buying a home the question to ask is:
How do I get my offer accepted on a house where there is a lot of competition?
As 2022 started, inventory levels are at historic lows.
Simply,
There isn't enough homes to sell to all the homebuyers ready, who are ready to buy.
As a real estate agent, where I represented many buyers over the last few years, I have to figure out a way to win against multiple offers and get a contract accepted for my clients.
This is the reason I came up with my top 5 ways to get an offer accepted in the middle of a bidding war.
#1 Include an Escalation Clause to Your Offer
An escalation clause is a provision inside a contract that allows the seller to escalate our offer above the highest sales price submitted.
The buyer’s contract price is automatically escalated to a maximum escalation point or the highest bid from other homebuyers. Whichever comes first
Example: An offer of $500,000 with an escalation clause to raise the offer up to $525,000. There is no need to amend the contract, and it is automatically put into effect, provided there is a higher offer.
If a competing offer was submitted for $520,000, the seller then has the ability of raising my offer to $525,000 and be the higher offer between both contracts.
#2 Removing The Appraisal Contingency
Although this may not be the most popular option, by removing the appraisal contingency it allows the sale of the property to go through regardless of what the house appraised for.
This is called an "appraisal gap"
As the homebuyer is required to bring more cash to the table.
Banks will lend up to the appraised value, if the appraisal comes back lower than the offered price, the buyer is basically on the hook for the difference.
The amount could be substantial, in some cases, we set limit,
As an example:
We may submit an offer with a limit for the appraisal gap.
If the offer was $535,000 and the appraisal came out to $500,000, when removing the appraisal contingency, the buyer will have to bring $35,000 more to the closing table.
Or you can limit this amount "up to" $10,000 as an example.
Be sure to discuss in detail with your real estate agent when applying this strategy.
#3 Be Aggressive and Be The First Offer
If you’ve submitted several offers on multiple properties and have no luck so far, consider becoming a little more aggressive by being the first offer...this could be sometimes advantageous to you
Some sellers and their agent do not want a bunch of contracts to go work through.
If your offer is clean, and you submit your highest and best offer immediately, you may convince the seller to accept your contract right away....while other agents are still coordinating the first showing.
To be the first buyer, you’ll need an aggressive real estate agent to help you through the process.
#4 Ask and You Should Receive
Ask your agent to connect directly with the listing agent and ask point-blank...
"What would be the ideal terms that the seller(s) would like to see inside an offer to buy their house?"
Maybe they need to stay for a couple of weeks after selling their home, so they can move with no major inconveniences...
Maybe they would like to see a bigger down payment, so they can feel secure with a stronger commitment from your part
There are many reasons why sellers will accept an offer...all you have to do is just ask and listen…
#5 Use An Experienced REALTOR®
The agent you choose will certainly have a direct effect on your success in buying a home.
It goes hand by hand, don't underestimate the experience, creativity and influence from the agent you decide to help you buy a home.
"I’m available to discuss a plan of action, when you are ready"
There are many opportunities for growth in the current real estate market. To find out what’s right for your family, let’s get together to help you understand your options and guide you toward the best decision,
To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!
For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540