Special offer

How to Make a Competitive Offer

By
Real Estate Agent with Remax Excellence - Silver Spring, MD Maryland #318884

If you would like to buy a home in Silver Spring, MD this year then you’re not alone.  2012 has brought some fierce demand the metropolitan area’s housing supply.  Depending on your targeted price range, desired neighborhood and amenities, you could find yourself bidding against other buyers.  If this happens, here are some strategies that will make your offer more competitive:

  • Fair Price

After you and your Silver Spring, MD Realtor sit down together and compare similar properties to the one you’d like to buy, establish a fair offer price.  This amount should be based on what has sold within the past 90 days, at most.  Do not low-ball unless you’re absolutely certain that the property is over-priced.

  • Subsidy

If you wish to ask for subsidy, whether for home repairs or closing costs, subtract this figure from your total offer to derive the amount the seller(s) will net.  The net should be in line with what other properties have sold for in the same neighborhood. 

  • Nickles and Dimes

Keep in mind that a few thousand dollars makes a big difference to a seller’s lump sum amount, but it does not make a big difference to a buyer’s financed amount.  Don’t lose your dream home by getting caught up in the BIG number.  You need to be looking at the effect an increase will have on your monthly payments, which usually ends up to be a few dollars when it’s all said and done.

  • Contingencies

You could present a picture perfect offer but if it’s littered with contingencies, the sellers might think twice.  Make sure your contingencies are fair and that your timelines are realistic.  A home inspection and financing contingency is common, but something like a home-sale contingency could really cost you your competitive advantage.

If you are ready to search for homes in Silver Spring, MD, contact Emcee Arah and the EMA Real Estate Group.  Arah and his team are dedicated to providing a quality experience through a stress-free, step-by-step system of real estate services that have been specifically designed to ensure a smooth relocation process for his clients. 

To contact Emcee Arah, call 301.452.5252 or visit www.LowPaymentHome.com.

Mona Gersky
MoonDancer Realty, Dillsboro,NC - Sylva, NC
GRI,IMSD-Taking the mystery out of real estate.

Emcee, one of the biggest pitfalls can be the buyer not thinking about the nickel and dime stuff.  You've said it very well.

  • Nickles and Dimes

Keep in mind that a few thousand dollars makes a big difference to a seller’s lump sum amount, but it does not make a big difference to a buyer’s financed amount.  Don’t lose your dream home by getting caught up in the BIG number.  You need to be looking at the effect an increase will have on your monthly payments, which usually ends up to be a few dollars when it’s all said and done.

Buyers in a competitive area need to realize that sellers have their choice again finally, they don't HAVE to take what the buyers are dishing out.  Buyers need to look at the biggest picture of all, do they want to risk losing the house they want over something which in the long run will be insignificant to them and potentially devastating to the seller?

Sep 25, 2012 10:12 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Emcee, buyers definitely need to have a strategy before they make an offer.  That's where our knowledge and experience come into play.

Sep 25, 2012 10:15 PM
Anja Kerstens, 669.270.8034
Compass - Morgan Hill, CA
GRI, NHCB, CDPE, CHS. Silicon Valley Homes

Good tips. Buyers and sellers need to be reasonable and keep the emotions outside of the negotiations.  Let their agents negotiate for them.

Sep 26, 2012 03:51 PM