Summer is quickly approaching and with that, there will be an influx of parents entering the market. Homelight’s Q1 2021 survey indicates that 53.5% real estate agents anticipate greater numbers than in previous years. If you think about it, it makes sense. It’s easier to enroll their kids in a new school system while school’s out rather than trying to do so in the middle of the school year.
If you’re thinking about entering the market to find a new house in a better neighborhood with a good school system this summer, you need to be ready for a very competitive market. It’s so competitive, NAR estimates that properties got four offers in February. What this means is that you need to submit an offer that stands out to the seller.
Here are four tips that could tip the scales into your favor in this ruthless seller’s market.
Submit a clean offer
The name of the game here is to make the seller an offer they can’t refuse. You can do this by waiving contingencies that may delay the transaction. These contingencies can be things like contingencies regarding financing or needing to sell your current home first.
However, there are some contingencies that you don’t (or can’t) waive. For example, a home inspection is something you’ll want to have because you want to make sure you’re purchasing a home that’s in good condition. We recommend consulting with your real estate agent regarding what contingencies are necessary and which ones you can leave out.
Don’t ask for personal property
While you’re touring a home you’re interested in, you may be drawn to furniture, light fixtures, or appliances that are clearly listed in the “exclusions” portion of the property description. You do not want to ruin your chances of getting the offer approved by ignoring this and asking for it anyway.
If you like something, you could ask where the owner got it – but never ask for it.
Offer above asking price
In the current market, 93% of agents reveal that many of their properties are embroiled in a bidding war – 97% say the low interest rates are partially to blame. If you want your offer to be accepted, consider submitting an offer above asking price. You could also include an escalation clause to the offer.
An escalation clause means if the house receives a higher offer than your initial offer, you’re willing to offer however much it’ll take to outbid the other buyer.
Put down a larger earnest money deposit and down payment
The earnest money deposit is a sign of good faith that you’re a serious buyer. The more you can put down as a deposit, the more the seller will see that you have every intention of buying their house. Just make sure you do want the house and aren’t just making a deposit while you weigh your options because you could wind up losing that earnest money if you decide to pursue another property.
Get the home of your dreams with a winning offer
It sounds funny when we say “winning offer,” doesn’t it? It’s like you’re playing the lottery and you’re keeping your fingers crossed that you have the magic numbers. Well, unfortunately in today’s market, that’s sort of what it is. While your offer may not be one of millions, it’s still a waiting game where you’re on the edge of your seats.
When you know the tricks of the trade on submitting an alluring offer sellers will pay attention to, you’re giving yourself a leg up. If you’re still uncertain about creating an appealing offer, always ask your real estate agent for advice!