Wednesday, May 9, 2018 / by Bret Johnson
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What do you need to do in order to create a competitive offer in this competitive market?
I came up with four steps to follow if you’re getting ready to make an offer that will give you a competitive edge:
1. Start the process with a full pre-approval. Reach out to a knowledgeable lender and get all of your paperwork ducks in a row so that when you make the offer, it will be as good as cash in a seller’s eyes.
2. Make the offer as clean as possible. I constantly see buyers asking sellers for help in covering their closing costs. Be sure to save up some extra money and understand that closing costs are going to be above and beyond the down payment requirements. Sellers tend to look negatively at having to pay that.
3. Make sure your current home is on the market. If you do have to sell a home, use the proceeds to buy your next home. Be sure that, at minimum, your home is on the market and ready to go. Additionally, be sure to show the seller of the home you’re looking to buy that your current home is under contract and set to close. When you make your contingent offer, it will look much more favorable to the seller.
4. Be prepared to make a strong offer. In some segments of our market, the average list-to-sale ratio is over 99%. You may have to go above the seller’s list price in order to get your offer accepted.
These are just a few tips that can help you beat the competition. As always, it’s important to sit down with a knowledgeable real estate agent and discuss what strategies and tips they have to get your offer accepted. If you need such assistance or have any other questions, please feel free to reach out to me. I’d be glad to help you out.