5 Ways To Get Your Offer Accepted in the Middle of a Housing Bidding War
ENE
13, 2022
Many rejected home buyers are finding lots of difficulties getting offers accepted by sellers.In this market, when buying a home the question to ask is:
How do I get my offer accepted on a house where there is a lot of competition?
As 2022 started, inventory levels are at historic lows.Simply, There isn't enough homes to sell to all the homebuyers ready, who are ready to buy.
As a real estate agent, where I represented many buyers over the last few years, I have to figure out a way to win against multiple offers and get a contract accepted for my clients.This is the reason I came up with my top 5 ways to get an offer accepted in the middle of a bidding war.
#1 Include an Escalation Clause to Your Offer
An escalation clause is a provision inside a contract that allows the seller to escalate our offer above the highest sales price submitted. The buyer’s contract price is automatically escalated to a maximum escalation point or the highest bid from other homebuyers. Whichever comes first Example: An offer of $500,000 with an escalation clause to raise the offer up to $525,000. There is no need to amend the contract, and it is automatically put into effect, provided there is a higher offer. If a competing offer was submitted for $520,000, the seller then has the ability of raising my offer to $525,000 and be the higher offer between both contracts.
#2 Removing The Appraisal Contingency
Although this may not be the most popular option, by removing the appraisal contingency it allows the sale of the property to go through regardless of what the house appraised for. This is called an "appraisal gap" As the homebuyer is required to bring more cash to the table. Banks will lend up to the appraised value, if the appraisal comes back lower than the offered price, the buyer is basically on the hook for the difference. The amount could be substantial, in some cases, we set limit, As an example:
We may submit an offer with a limit for the appraisal gap. If the offer was $535,000 and the appraisal came out to $500,000, when removing the appraisal contingency, the buyer will have to bring $35,000 more to the closing table.
Or you can limit this amount "up to" $10,000 as an example. Be sure to discuss in detail with your real estate agent when applying this strategy.
Maxus Realty Group Agents are local specialists with knowledge to help you buy and sell the right home, at the right price.
We are passionate about you as a client, we will always protect your best interests just because it's the only way we do business day in and day out.
Today, we'll talk about 5 Ways To Get Your Offer Accepted in the Middle of a Housing Bidding War
#3 Be Aggressive and Be The First Offer
If you’ve submitted several offers on multiple properties and have no luck so far, consider becoming a little more aggressive by being the first offer...this could be sometimes advantageous to you
Some sellers and their agent do not want a bunch of contracts to go work through. If your offer is clean, and you submit your highest and best offer immediately, you may convince the seller to accept your contract right away....while other agents are still coordinating the first showing.
To be the first buyer, you’ll need an aggressive real estate agent to help you through the process.
#4 Ask and You Should Receive
Ask your agent to connect directly with the listing agent and ask point-blank...
"What would be the ideal terms that the seller(s) would like to see inside an offer to buy their house?"Maybe they need to stay for a couple of weeks after selling their home, so they can move with no major inconveniences...Maybe they would like to see a bigger down payment, so they can feel secure with a stronger commitment from your part There are many reasons why sellers will accept an offer...all you have to do is just ask and listen…
#5 Use An Experienced REALTOR®
The agent you choose will certainly have a direct effect on your success in buying a home.It goes hand by hand, don't underestimate the experience, creativity and influence from the agent you decide to help you buy a home.
"I’m available to discuss a plan of action, when you are ready"
Our commitment as your real estate professional is to help you find your dream home at the right timing for you.
It's the biggest purchase of your life, and can assure you that even small mistakes can be costly. BEWARE, technology changes almost daily and I can help you pinpoint all the homes for sale near your location points. I have access to over 18 million properties from hundreds of locations, including Government properties, action homes, VA homes, HUD Properties and all available private houses for sale in between.
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Fernando Herboso Broker 301-246-0001
