3 Little-Known Tips for Buying a Home in a Highly Competitive Market
Make your offer stand out.
Hiring a professional to represent you will remove your stress, and place you in the best position to get that home you love.
We all know the basics: get pre-approved, work with a great agent, and act fast. But what about the secrets only the pros know? Here are three lesser-known strategies to help you get the upper hand in a hot market like Charleston.
1. Skip the Contingencies
In a competitive market, sellers are looking for the cleanest, most straightforward offers. By waiving certain contingencies, you can make your offer more attractive without necessarily increasing your offer.
Which Contingencies to Consider Waiving:
Home inspection: You can still get an inspection for your own peace of mind but offer to waive the inspection contingency.
Appraisal: If you’re confident in the property’s value and have some financial cushion, waiving the appraisal contingency can set your offer apart.
Financing: If you’re pre-approved and have strong financial backing, waiving the financing contingency shows you’re serious and ready to close quickly.
Pro Tip: Skipping contingencies is like playing poker – sometimes you have to go all in to win big!
2. Offer More Than Just Money
Money talks, but sometimes other perks can make your offer more attractive. Consider including incentives that sweeten the deal for the seller.
Non-Monetary Incentives:
Flexible closing date: Offer to close on a date that works best for the seller.
Rent-back option: Allow the seller to stay in the home for a short period after closing if they need extra time to move.
Cover closing costs: Offer to pay some or all of the seller’s closing costs to ease their financial burden.
Pro Tip: Sometimes it’s the little things that make the biggest difference. A flexible closing date can be the cherry on top that seals the deal!
3. Use an Escalation Clause
An escalation clause can be a game-changer in a bidding war. This clause automatically increases your offer if there’s a higher bid, up to a specified maximum amount. It shows you’re serious and willing to go the extra mile without overbidding from the start.
How to Use an Escalation Clause:
Set a cap: Decide on the maximum amount you’re willing to pay for the home.
Incremental increases: Specify how much your offer will increase each time there’s a competing bid (e.g., $2,000 above the highest offer).
Work with your agent: Ensure your real estate agent includes this clause in your offer and explains it to the seller’s agent.
Pro Tip: Think of an escalation clause as your secret weapon – it keeps you in the game without letting your budget spiral out of control!
Don’t get me wrong. There’s risk involved in using these strategies.
That’s why it’s critical to hire a professional real estate agent, someone with years of experience.
Someone who will guide you through how to craft the language. And how to cap your risk.
Buying a home in a competitive market doesn’t have to be a stressful experience. With these little-known secrets, you can give yourself a leg up and increase your chances of landing the home you love. Remember, a mix of strategy, persistence, and a bit of creativity can make all the difference.
