Here are your options for buying a home and selling another at the same time.
Sometimes buyers wonder if it’s even worth it to compete against other buyers in a seller’s market. When there’s very little inventory, it’s not unusual for sellers to receive five, 10, or even 20 offers. It’s almost always a good idea to write an offer anyway. Here are five tips to make your offer outshine the rest:
1. Submit a large earnest money deposit. Pending home sales sometimes fall through, and many sellers are worried that once they commit to an offer, the buyer may back out of the transaction or default on the contract after the other buyers have moved on from this property. Earnest money reassures them that you’re a serious buyer. By increasing it above average, you’re showing the seller you’re very genuine in your interest in the home. You’re only offering more money sooner rather than later, and it speaks volumes to the seller.
2. Show sellers that you’re qualified. Almost every offer will be accompanied by a pre-qualification letter. To stand out, ask your lender for a loan pre-approval letter, which is different than pre-qualification. Being pre-approved makes you a stronger buyer in the seller’s eyes.
3. Give the sellers time to move. Buyer possession of the house is often a sticky point in the negotiation. It’s hard enough to juggle multiple closings if you’re buying and selling simultaneously, and even more difficult if the sellers are doing the same. Cut them some slack by giving them two to three days to move after the closing without expecting compensation. They’ll love it!
Being pre-approved makes you a stronger buyer in the seller’s eyes.
4. Write your best offer. Don’t hope for negotiations, offer the highest price (or maybe a bit above list price), and make it attractive. Ask your real estate agent for a competitive market analysis on pricing. Sometimes sellers set a price deliberately below comparative sales in the area to get buyers into a bidding war. So paying a little extra doesn’t mean you’re paying more than market value.
5. Don’t request favors. This is not the time to be asking for their refrigerator or say you want them to paint the front door. Asking for extra things when someone else is not can get your offer eliminated.
If you have any questions about purchasing a property in today’s market or have a topic you’d like us to cover in these videos, please give us a call or send an email. We look forward to hearing from you.