Writing Offers that get Accepted!
Lately the market is going crazy. There are 20 or more offers on some homes, many well over asking price. So how does a Buyer get an offer accepted. There seems to be two approaches:
The first approach is to keep writing offers that are very reasoned, with a price based on sold comps. Sometimes asking for closing cost credits and maybe 30 days to close. Many people will submit dozens of offers like this; and in this market they will all be rejected. These are not offers that anyone will take seriously.
In this market at the time of this post to get an offer accepted you need to submit it almost as soon as the home comes on the market – don't take too much time to think about it – that is what a contingency period is for.
The price needs to be at asking (assuming asking is on the proper side of the moon) and maybe more. Don't think so much about sold comps and what it might appraise at. Think about how high the offers were you had rejected and how much higher you may have to go to get the offer accepted. Having cash or huge down payment is big, because the odds are that to get an offer accepted you will have to offer more than the home will appraise for. Think about how much the home is worth to you, not the appraiser. See my Post on How Do You View the Value of a Home!
Here is where Cash is King. Not because it gets you a better price – but it can help you get your offer accepted. With cash the appraisal is not that big of an issue and you can offer a quick closing time. Yes quick closing times and short contingency periods are big.
If you are a first time buyer and have a minimal amount for a down payment you may think you are being squeezed out. To some extent that is true, but there are still ways to make this market work for you and get a great home. However, those secrets of this market are for those that call me for help at 925-260-4321.
What I find with my buyers it is really hard for them to accept what they need to do to get a home. They will put in 5 to 10 or more offers before they get it. I give them the best advise I can then submit the offers they tell me to and realize it is part of educating the buyer. But when they finally get it and start putting in the offers they need to then all of a sudden they find themselves getting offers accepted on 2 or 3 properties.
Some people like to learn from experience – however it can be better to learn from other peoples experiences. Get a good Realtor and put in the right offers to get your dream home.
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