It’s not fun to be a buyer now, but it’s not hopeless, either.
Almost every listing in today’s market has been receiving multiple offers, some getting double-digit offers. We’ve seen many declined offers, even those written for between $80,000 and $125,000 over asking price. Recently, we even had an offer that was rejected at $150,000 over asking price with a total appraisal waiver and a short closing period. That was heartbreaking, but it’s the reality of the market right now. So what can you do to increase your chances of getting your offer accepted?
It should come as no surprise that cash is king in our market. If you can use cash to buy a home, that will definitely make your offer more appealing to a seller. The first thing any seller looks for in an offer is the opportunity to make a bunch of money, so if you can’t use cash, you need to be prepared to write an aggressive number on your offer.
Beyond your purchase price, the seller will look at your terms as the next deciding factor when it comes to which offer to choose. That includes things like the closing date and what kind of loan you’re using to finance the purchase. Appraisals are a huge concern for sellers as well. Even though most homes are appraising for their purchase prices, some of them don’t, and for those that don’t, most sellers are going to lean toward buyers who have committed to bridging any gap between the appraised price and the purchase price.
“If you have good representation behind you and you’re willing to roll up your sleeves to do what’s necessary, you’ll be able to purchase a home in the second quarter of this year. ”
We’re also seeing more and more as-is purchases these days, which weren’t taken as seriously in the past. These days, sellers often have backup offers, so as-is buyers need to walk the walk or risk the seller declining to work with them. They can’t kill the deal unilaterally, but they don’t have to give you any concessions, especially when they know that there are another 20 buyers clamoring to get their property.
These have all been very uncomfortable conversations for us. We’re here to serve and protect you, so we want you to do your inspections and prevent you from overpaying for a house, but as one of my really sweet clients put it, “The market is just gross right now.” As it is, you have to match gross with gross, because that’s what it takes. Unfortunately, many buyers are waiving inspections, which we recommend against; if you commit to buying a home as is, you can still do an inspection to get a better picture of what you’re buying.
It’s not all doom and gloom, however. We are managing to get our buyers’ offers accepted. You just need to maintain a strong mindset and keep your emotions in check, which isn’t always fun, as the home-buying process is often very emotional. If you have good representation behind you and you’re willing to roll up your sleeves to do what needs to be done, you’ll be able to purchase a home in the second quarter of this year.
If you have any questions about buying a home or the market in general, don’t hesitate to reach out to us. We’d be happy to help.