9 Tips: How to Get Your Offer Accepted in a Sellers’ Market

Most buyers are aware that we are experiencing a Sellers’ Market; however, being aware of the market and knowing how to respond if you REALLY want to buy a home in this market are two completely different things. If you’re serious about buying a home in a Sellers’ Market, then you MUST consider these tips!

1. Work with a bulldog Realtor®
   Your best friend who’s a Realtor may get the job done, but you’ve got too much money at stake to mess around. You need someone that isn’t afraid to get their hands dirty. Experience DOES matter. Age is not experience. You need a Realtor who has Worked as Buyer’s Agent AND has recent sales.
2. LISTEN to your Realtor
   Use their experience for your benefit, but also do your homework to know the market yourself. A good Realtor will know the market and work to find out what the seller wants.
3. Get a Pre-APPROVED with RIGHT lender
   A good lender will have a solid track record for closing. They answer calls, from you or your Realtor, even on the weekend. Big banks won’t do that. A good lender is also proactive with problems. They’ll spot any issues before they arise.
4. Inspection period
   Shorten the period from the usual 15 days. 5-7 days is usually enough time. Just verify with your inspector that they can get to it in this busy market. Don’t push sellers for non-essential repairs during this inspection period. Often they have backup offers and will simply tell you no. You could pay for the inspection and then have to start your search all over again.
5. Pay above appraisal value or waive this contingency altogether
   Your lender may not want to finance the home above the appraisal, so you will need additional cash in addition to the down payment and closing costs.
6. Make a good deposit
   A strong down payment indicates to the seller that you are a well qualified buyer. A seller doesn’t want to take their home off the market and go through inspections for a buyer that is not really well qualified. Put down a good amount, $1,000 – $5,000, that will show you are a serious buyer. If any issues come up with inspections, this payment is often refundable.
7. Avoid contingencies
   Asking the seller to pay your closing costs or contingencies like the sale of your existing home may be a requirement for you, but they weaken your offer. Make them only when needed.
   It’s important not to violate any fair housing regulations which include discrimination based on race, color, national origin, religion, sex, family status and disability.
8. Cash is king
   However, it’s ALL CASH at the closing table. If you have it great, but it’s not everything. Don’t make a low ball offer thinking they’ll choose you over someone else because their cash came from a bank.
9. Make a good offer
   Lastly, but importantly is your offer amount. The asking price is often the starting point and often goes UP from there. Ask your Realtor about an escalatory addendum to keep your offer competitive.

Of course, all this goes out the window in a Buyers’ Market. Markets change and your behavior should too. As noted before, the FIRST key is your Realtor. Listen to your Realtor and ask questions. Remember, they get paid by the seller ONLY when YOU close, so they’re motivated to get you closed.

For more information on buying a home, look here- BUYING A HOME. If you have questions or would like help, please give us a call.