Lot Size5.16 ac
Home Size1,873 sqft
Days on Market3
How to Win Offers in a Seller’s Market
- Real Estate Tips
- February 23, 2021
During the pandemic, the interest rates for mortgages have been at an all-time low. Millions of buyers are out there, searching for their dream home while the market is low. While low interest rates are perfect for a long-term investment like a home, they also mean it is now a seller’s market. A seller’s market simply means that there are more buyers than there are homes available for sale.
Generally, in a seller’s market, it is often very difficult to get an offer accepted on a home with all the competition. When your full price offer is rejected, how can you find your perfect dream home?
Check out these tips and learn how to get your offer noticed!
1. Make an Offer Without Contingencies: An offer without any contingencies is an offer that is more likely to be accepted. A clean offer is not contingent on the sale of another property or have any boundaries financially to worry about.
2. Offer Above Asking: Offering full price will not cut it in a seller’s market. Low offers will get you nowhere and may even hurt your chances! While you do not need to offer an unreasonably high offer above the asking price, a few thousand can often do the trick. In some cases, you will only need to offer $2,000-$5,000 above asking price to have your offer accepted.
3. Put Down an EMD: An EMD, or Earnest Money Deposit will act as a form of proof that you are a good-faith buyer. Generally, the average EMD is around 1% of the purchase price of the home, and it will contribute to your down payment and closing cost.
4. Pay with Cash: Many real estate experts will suggest that cash can often give a buyer the upper hand, as they are not a financed deal and do not come with that contingency. When a buyer is financing their home through a lender, they often have many hoops to jump through including inspections, or appraisal contingencies. With a cash offer, the choices are up to the buyer.
5. Write a Letter to the Seller: In some cases, a personal touch may be the right way to get your offer accepted. Some sellers will only care about the price, but others may want to see their home go to a good family that will take care of it.