So you have found the home of your dreams!! It is perfect in almost every way and you have already started moving in; at least in your mind. You can see yourself cooking up a storm or enjoying the outdoor space or finally be able to have your own bathroom- whatever it is THIS IS YOUR HOUSE.
Except in this market you are not alone in believing and feeling this is your dream house. In fact there are multiple other people who have already visually moved in.
WHAT DO YOU DO?
This is where having a professional experienced agent who is knowledgeable about the market and the process is a necessity. And then here are the TOP FOUR things you can add to a contract to, potentially, win the home of your dreams.
- PRICE: Let’s be real here. Sellers, most often, are looking for the highest price. They want to see offers that are at list price or higher. When considering a higher offer let me clear- consider making an offer that is 4%-7% above asking. As the data in the market is telling us homes are getting multiple offers and we are seeing SELLING PRICE well above asking. Sellers care about PRICE. The highest normally wins.
- APPRAISAL GAP COVERAGE: If you are willing to pay more for the home then a seller wants to ensure you are actually willing to pay that price. Writing an appraisal gap coverage makes your offer less risky in comparison to others.
What is appraisal gap coverage? It is a clause in the contract that states if the appraisal of the home falls below the contract price you, as the buyer, are willing to bring extra cash to closing to honor the original offer price. - LIMITED OR NO INSPECTION OBJECTION ITEMS: Along with price sellers want to see as much profit as possible and another way to WIN an offer is to limit your inspection items. I will always encourage my buyers to perform an inspection but if they feel comfortable we can limit the items to health and safety only- things like HVAC, water heater, roof, electrical, sewer and radon. Another strong offer is to eliminate the inspection objection all together; meaning you won’t ask the seller to fix or offer money for anything in the home. We always keep inspection TERMINATION to ensure if there are items that can not be taken care of you can terminate.
- POST OCCUPANCY AGREEMENT: In this market many sellers are searching for a replacement home and may need time to find it, close on it and move out. If you have the flexibility to allow the seller to stay in the property (no more than 60 days) this can give them peace of mind and be a strong tool to win an offer.
While there is no guarantee these will win an offer on your dream these will certainly strengthen your offer. Understanding the seller, their motives, their fears and their needs can really play a pivotal role in winning the offer on your dream home. This market is challenging but it is no unattainable!
Cheers,
