The real estate market is extremely competitive right now. Many homes are on the market for mere hours before being placed under contract; and many are selling above the asking price!
Fortunately, there are things you can do to increase your chances of getting the home you love.
At The Mama Bear Team we stay on top of market trends and work hard to make sure we know every strategy to help a buyer secure the home they want. Below are just a few of the strategies you can consider using:
- Consider using an ESCALATION CLAUSE. The benefit of this clause is that it may allow you to purchase a home without having to go to your maximum price in your first offer. The escalation clause protects you from competing against a false offer or competing on an “apples-to-oranges” basis.
- SELLER’S CLOSING COSTS PAID BY BUYER (such as: Title Policy, taxes, moving, etc.). This added value approach can be used when a Buyer has extra cash and chooses not to increase the price due to appraisal concerns. You can agree to pay specific Seller closing costs, or an amount “up to $X,XXX.” While paying some of the Seller’s closing costs can modestly improve the Seller’s net (no commission is paid on Seller closing costs), the primary benefit is reducing appraisal concerns.
- CLOSING DATE. If you can be flexible (for example close sooner or later than “normal” timing) on the actual closing date, this could be beneficial to the Seller. If you plan to have a shorter than normal close, be sure your lender commits to the closing date up front.
- EARNEST DEPOSIT. Providing a higher-than-normal earnest deposit will show a Seller that you are a more serious Buyer. You may consider raising the earnest deposit to equal your loan down payment, as this provides a clear message to the Seller that you intend to buy the home… not just make an offer.
Most of all, make sure you have an experienced Realtor® who understands their market, and how to employ these and other strategies when representing you. A knowledgeable and engaged Realtor® can save time, money and possibly even the home of your dreams. At The Mama Bear Team, we work together to protect our clients with every move they make.
Ready to buy a home? Contact us today!