3 Tips To Compete in a Tough Market

 Here are three ways you can make your offer stand out in a tough market. 

It’s no secret that the real estate market is extremely competitive right now. If you’re looking to buy a home, what can you do to make your offer stand out to sellers? Today we want to go over three ways to gain a competitive edge in this tough market:

1. If cash is king, conventional financing is queen. Cash offers are great, but they aren’t an option for everyone. The next best thing is a conventional loan since they require high credit and a low debt-to-income ratio. Conventionally financed offers are accepted more than any other type of offer by volume, so you can definitely compete with one. FHA loans are a great product, but in a competitive market like this one, they may not cut it. 

2. Offer to cover an appraisal gap. Anyone can write a bid above the asking price, but just because you offer a high dollar amount does not mean the home will appraise at that value. To make your offer stand out, you can agree to pay the difference between the appraised value and the asking price up to a certain amount. This will give a seller more confidence in your offer. 

3. Ask your seller what’s important to them. It seems obvious, but you’d be surprised how many agents don’t ask sellers what they’re looking for in an offer. Money is important to some, but it isn’t most important to all. Maybe they want a quick close, or they’d like to stay in their home for a period of time while they look for a new one. If you meet your seller’s needs, they’ll be more likely to accept your offer.

As a bonus tip, we recommend you put down a large earnest money deposit. If you don’t plan on walking away, you have nothing to worry about, and it shows your seller that you aren’t just window shopping. 

Of course, our team has plenty more tricks and tips to help get your offer accepted. If you’d like to know more, just reach out to us via phone or email. We’d love to hear from you!