Today I’m sharing a few pointers for buyers looking for a competitive edge in today’s market.
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How do you get the winning bid if you’re a buyer who’s been out there looking for that right home? Here are three things to remember that will help you stand out among the competition and make the hectic home-buying experience a little smoother:
1. Sellers are looking for more than just a good price. You need an agent who will reach out to the listing agent to find out exactly what the seller wants. Oftentimes, it has to do with timing; perhaps they want possession after closing or would benefit from an extended escrow period. In some cases, they’re simply looking for a buyer to put forth a strong due diligence fee.
As a reminder, the due diligence fee is money that you give to the seller up front in exchange for them taking their home off the market while you two try to work out a deal. That money is credited to you at closing, but if you walk away for any reason or no reason at all, the seller gets to pocket it. That’s why the higher your due diligence money, the more committed to the deal you’ll seem.
2. A high earnest money deposit is another sign of buyer commitment. How much are you willing to put down? Though it’s probably not as important today as that due diligence money, it’s still a great way to communicate that you came to play. A stronger down payment is also a relevant factor, but remember: We don’t want to guide you as a buyer into a situation that you’re uncomfortable with.
3. Having a backup plan in case your house doesn’t appraise is critical. In today’s fast-paced, ultra-competitive market, we’re seeing appraisals come in lower than the contract price more frequently. This scenario becomes increasingly likely when there are multiple offers on a property and someone has greatly run up the price. As a buyer, are you willing to bridge a gap between the contract price and the appraised value? If so, how big of a gap are you willing to bridge? By stating in your offer that you’re willing to cover a difference of, say, $15,000, you’ll make the offer a more attractive option to the seller.
“The higher your due diligence money,
the more committed to the deal you’ll seem.”
I hope you found these pointers to be helpful. As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to hop on a free, no-obligation strategy call with you so I can hear about your specific buying needs and we can craft a custom plan.
