Selling season is in full swing in our neck of the woods. And with Nashville being “Nowville,” housing inventory is tight. Don’t lose your game face. We’ve got a few winning strategies to make sure your offer stands out in a crowd.
1. Be Ready. Sounds obvious right? But I can’t tell you how many miss this crucial step. Before you even step foot in a potential home, know how you are going to buy and what you qualify for. If paying cash, make sure you have a ‘Proof Of Funds’ or POF letter from your banker or investment broker. Cash is, and always will be, “king” (but only if and when you have proof…). If you are getting a loan, and don’t worry, most folks do– please make sure you have submitted all your loan documents and have a pre-approval letter at the ready. First and foremost, your agent and prospective sellers need to know you are serious about buying a home.
2. (Sort of) Waive the Inspection Contingency. A carefully crafted inspection clause offers buyer protection, but still appeals to the seller. Reads to this effect:
Buyer will have inspection as described in the Purchase and Sale Agreement and may terminate agreement due to unfavorable results of the inspection; however, if buyer goes forward with purchase, buyer agrees to take the home in “as is” condition. Buyer will not ask for any repairs.
In essence, buyer is waiving repairs, but with an out if inspection turns up anything suspect. So if there is ‘obnoxiously’ deferred maintenance that was well concealed or the roof needs replacing, etc… buyer may walk.
3. Use an Escalation Clause. Not for the faint at heart. Works like this:
Buyer offers a contract price of $X [insert number, e.g. $1,000] higher than the highest bona fide offer (net of concessions), not to exceed $X [insert cap number, e.g. $10,000].
Best used only when you are fairly confident there are multi-offers and you unequivocally love and want the home. Also best implemented only under the guidance of an experienced local agent, as it can get tricky.
4. Consider a Letter From the Heart. Okay, this might sound cheesy, but it is effective. Write a personal note to the seller to attach to the offer. Be genuine. Connect with the seller. Let them know why their home resonates with you. Many folks have emotional attachments to their homes (I do, don’t you?) and they want to know that the new owners are going to love it just as much.
5. Remain Flexible. The highest offer doesn’t always win. Sometimes you can’t put a dollar amount on timing. If you are willing to be flexible and give the sellers their ideal closing and moving dates, well—that can be worth a lot. If you know the seller needs a quick close because they just bought a place, give it to them. If they are building a home and the builder is behind because of unseasonable rain, go with a longer close or offer to close quickly but give them a “lease back” period. Moving is stressful—anything you can do to alleviate stress for the sellers is a winning proposition.
So there you have it. These proven techniques have helped us land many a dream home for our buyers. We have even more winning strategies, just ask! We always get creative to help you win in this real estate atmosphere so that the odds may be ever in your favor.
Multiple offers are here. Are you ready?