How to Win a Real Estate Offer...

If you are currently someone in the market looking to buy a home, especially here in the Maryland area, there isn’t much available, and what is, there’s already multiple offers.  So, how do you win?

There’s never been a time in real estate where strategy matters more.  In a competitive sellers market, with limited inventory and high interest rates, who you work with makes a big difference in helping you get across the finish line.  If you don’t have unlimited cash, you will need to make your offer as strong as possible.

To beat the competition, you need to be quick to make a decision, your financing in order, and an advantage over the rest of the offers coming in. And no, it's not necessarily waiving the home inspection.  Not all the time. No, the advantage is how do you make your offer as good as cash, when it's not “cash-cash”?

Enter in, the Appraisal Gap Coverage.

You see, you can offer unlimited dollars for any home, but if it doesn’t appraise, are you paying the difference?  Well, when it comes to a cash offer, the seller knows exactly what they are getting and that security is worth more than risking it on an appraisal.

So how could you do this?  Well, with the appraisal gap coverage, we would make an offer that you would cover any “short fall” from a lower appraisal.  Hence guaranteeing that seller the money regardless of the appraisal.

This does mean you will be bringing additional cash to closing to cover the difference, but this one thing will make a major difference in your next offer as there are a lot of buyers unable, or unwilling to do so.  And by the way, I have seen as little as $5,000 & $10,000 gap coverage win offers.