Union County is experiencing a “thinventory” – an unusually low inventory this spring which is bound to drive up prices this summer. Smart buyers know that their offer has to come in quickly and strong when they find the house they want to buy.
Of course, bidding wars result all the time in Union County but you might be surprised to know that often the winning bid isn’t necessarily the highest. Other factors are important to the seller just as much as price and smart buyers adjust the terms to be the most appealing to the seller.
Here are three ways you can increase the likelihood that your offer will be accepted.
- Increase your downpayment. The more you’re financing, the less appealing your offer is. Sellers know that larger mortgages are less likely to be approved and sellers may choose a purchaser who is borrowing less to minimize their own risk. Cash is king, and a full cash offer of $500,000 may win over a financed offer of $510,000, especially when sellers are in a rush. Additionally, a large downpayment, or even a cash offer, means that the sellers won’t have to worry about the appraisal coming in too high.
- Eliminate contingencies. Often, home buyers need to sell their prior home before they can purchase a new home so they include a contingency in the offer. Sellers interpret that as a less than guaranteed offer and are more likely to choose a comparable, or even lower, offer without a contingency. Likewise, eliminating an inspection contingency can be a huge factor that helps sellers see your offer as legitimate and worthy of acceptance. Make the deal as easy for the seller as possible.
- Be flexible. Agree to a closing date that meets the seller’s needs. Rigid closing dates may mean that the seller is inconvenienced by either having to move sooner than they wanted or later than they wanted. Maybe they want their children to finish out the school year in their old school, or maybe they need to be in their new home to start a job by a certain day. Make it clear in your offer that you’re flexible and sellers who have a firm deadline will appreciate it.
When you find your dream home, acting quickly and making your offer have favorable terms are the most important steps to making your dream a reality.