AS A BUYER, HOW DO I GET MY OFFER ACCEPTED IN THIS COMPETITIVE MARKET OF MULTIPLE OFFERS?

Today’s buyers are finding that there is definitely a lower number of homes for sale than in recent years, and also that there are a lot of buyers ready to take advantage of the low interest rates and make that move before home prices go even higher. This combination of factors has resulted in a very competitive market for buyers, and many are frustrated with the process of trying to get their offers accepted by sellers.

The first step to being successful is to choose the right Realtor! An agent who is familiar with the neighborhoods you like, and who has a deep knowledge of the real estate purchase contract and the escrow process will be a tremendous asset to you as a buyer. So, in other words, choose a Realtor who has been in the real estate business for several years, and who has  successfully helped lots of people buy and sell homes in the areas in which you are looking. There are obvious things a buyer and agent can do to increase the likelihood of having an offer accepted, such as submitting the highest offer. But that is not always possible and when it is not, there are many nuances as well. This is where working with an experienced Realtor pays off.

One of the most important things to a seller considering multiple offers is how financially qualified a buyer is to purchase their home. A seller does not want to go into escrow with a buyer who ultimately isn’t able to obtain a home loan. So as a buyer it is important to have your preapproval completed with a strong lender prior to beginning your home search. When you do find that home you like, always submit your lender preapproval letter with the offer, along with proof of funds (i.e. copies of your bank statements)that is in excess of your down payment. It is also a good idea to have your lender place a phone call to the seller’s Realtor to assure that agent of your financial qualifications and to answer any questions the agent or seller may have. An experienced Realtor will be able to refer you to a great lender if you don’t already have one. Also, a buyer can offer to deposit a larger sum with Escrow at the start of the escrow process (known as an Earnest Money Deposit). This is one more way to give that seller confidence in your financial strength, and your Realtor can advise you in this regard.

There are also items in the home purchase contract that can be modified to make your offer more attractive to a seller. For example, you can agree to shorten your inspection period from the standard seventeen days, so that the seller has a shorter time to wait to learn if you are happy with the condition of the home. You can agree to waive the appraisal contingency, committing to the seller to purchase his home regardless of the price the home appraises. But be sure to consult with your Realtor before doing this, as there are financial and other potential ramifications. The typical purchase contract calls for the seller to purchase a home warranty plan for the buyer. As the buyer you have the option to waive this added expense to the seller, but again please discuss this with your agent first. Lastly, keep in mind that the sale of a home is often an emotional experience for a seller. The seller may have lived in the home for years and raised a family there. It is a great idea to write a personal letter from you to the seller, telling them a little bit about yourself and why you love their home. The contractual and financial issues are very important, but this letter can be the icing on the cake that helps get your offer accepted!

And a note to the sellers out there…if you hire a Realtor to sell your home who works hard to help buyers get their offers accepted, that agent will also work hard to make sure the offers you receive meet the financial and contractual criteria for a successful sale!

Lisa McAfee
858-243-3722
lisa@LisaMcAfee.com
www.LisaMcAfee.com