The Winning Offer! | Monday Minute April 5, 2021

When buying a home and competing against multiple other offers, is the only way to win by offering the most money?  Well, not always.  Depending on the house, area, and the seller's needs, there may be a handful of other factors that can help you win without having to pay an arm and a leg above the list price.  So let’s look at those options.1. All Cash Offer.If you have the means to pay all cash vs getting a loan, you could have a massive advantage over other offers.  If a buyer is getting a loan to purchase a home, they are most often contingent on the home appraising for the list price or having to come up with any additional cash over the appraised value if coming in lower than the contract price.  And when offers are escalating 5-10%+ over list price, that appraisal contingency is often a deal breaker for sellers who know that if it doesn’t appraise, they are looking at less money or putting the house back on the market.  With an all cash purchase, you have a much greater chance of getting the contract and paying less than other competing offers.2. A Quick closing.If a seller is anxious to get moved, having a shorter timeframe to get to settlement, will quite often shine above other competing offers that need a few more weeks to get to settlement.  Even if you aren’t doing an all cash offer, there are options even with financing, to settle in as little as 2 weeks or less.3. A rent back.If you have a seller who needs additional time to get things together before moving, offering a post settlement rent back may be the ticket to winning them over.  If you have flexibility on when you need to move in, this option can give the seller the flexibility they need and can make your offer very intriguing.4. No contingencies.The cleaner the offer, the more advantageous to the seller.  Just because the contract price has been agreed on, sellers knowing that there is an impending home inspection or other contingency like an appraisal, means that the deal could still fall apart or terms could change.  Removing contingencies will make your offer more appealing to most sellers.5. The emotional connection.Buying and Selling residential real estate is often a very emotional transaction.  The sellers have spent their lives in this home, creating many memories, and often have a lot of emotions tied to it.  Knowing that they are selling their home to the next buyer that will appreciate and love their home the same is a powerful connection that money can’t necessarily purchase.  Writing a letter to the seller, sharing your story, and how much you love their home, might be that winning connection.With one of these above strategies, or a combination of them, you are one step closer to winning that next offer.  If you have any questions about buying a home and how you can make a winning offer, give us a call today.  We look forward to helping you.