As a buyer in the current Real Estate Market, it can be a challenge getting your offer accepted. Spokane Real Estate is experiencing a lack of listing inventory. As a seller, this means if your house is priced correctly you are having your choice of a buyer for your home. As a buyer, it means when making an offer you are in a competitive multiple offer situation.
This can be discouraging for buyers. Many of the buyers I am working with have been frustrated by their ability to find a home that suits their needs. Not only that but they are having trouble getting their offers accepted.
Here are my eight tips for getting your offer accepted in the current real estate market.
- Get Pre-Approved
This seems pretty obvious but I have received several calls over the past few weeks from buyers who have found a home they like but aren’t pre-approved. In the few hours or days it has taken to get pre-approved they have lost the home to another buyer. Getting pre-approved is important for a lot of reasons. Most importantly, in the current market, a buyer has no chance at getting their offer accepted without a pre-approval letter. Being pre-approved will also help you narrow down your search and put together a more competitive offer by knowing exactly what you are approved for.
- Be Available
The best homes for sale in Spokane are only lasting a couple of days or hours on the market before they have an offer or multiple offers. When your Realtor calls and says a home that matches your needs list comes on the market you need to be available to see it. This may mean leaving work or dropping everything to go see the home. If buying a home is important to you it is important that you are available to see homes as soon as possible.
- Be Clear About What You Are Looking For
As you begin the process, make a clear list of things that your new home must have. Prioritize the list by what you can and can’t live without. If you are in a hurry to buy a home you may have to give up a few of the items you want in a house to make sure your main priorities are met. Talk with your lender about what amount your goal monthly payment is in as well as what the maximum amount you would be pre-approved for is. Those numbers are typically a little different. However, if you find your dream home you may have to move up in purchase price to be able to get it.
- Renovation Loans
If buying a home in a certain neighborhood is a priority you may find a home that lacks a few of the items on your needs list or simply needs some updating. Using a renovation loan like an FHA 203k or Conventional HomeStyle Renovation loan will allow you to finance some of those upgrades. These can be a great option for buyers who are willing to do a little work to create the home of their dreams.
- Make An Offer Without Contingencies
As I said earlier, many sellers have their choice of whose offer they will accept. If an offer or pre-approval is contingent on you selling your current home or starting a new job (buyers relocating) sellers may be less willing to accept those types of offers.
- Boost Your Earnest Money
An earnest money deposit is a deposit that shows the sellers you are serious about buying their house. It is typically about 1% of the purchase price. By offering a higher earnest money deposit you are showing the sellers your seriousness in being the buyer for their home.
- Eliminate Inspection Contingencies
On most purchase contracts there is a 10 day inspection period in which the buyer will use to get an inspection to learn more about the house. If the inspection goes poorly the buyer has the ability to back out of the contract with no risk. This is a concern to the seller’s as many buyers are making offers and using the inspection to make a final decision on purchasing the home and backing out of the contract prior to the end of the inspection period. By waiving or shortening the inspection period you are giving the seller an indication of your seriousness in purchasing their home. By getting rid of the inspection contingency you are usually putting your earnest money deposit at risk. I would recommend still having an inspection but either shortening the contingency period or weaving it all together.
8. Pay Your Own Closing Costs
In a competitive offer situation seller’s will want to get top dollar for their home. If they are paying for your closing costs their bottom line is reduced. This would make an offer asking for seller paid closing costs much less attractive. Work with your lender to find alternative ways to pay the closing costs. An option may be to add part or all of them into the interest rate for the loan.
Most sellers will fall into one of two categories.
They either want their home to sell quickly or get top dollar for their home. In this market, many of them are getting both. Also likely they want the process to be smooth and stress-free. You and your Realtor will want to find out what the priority for the sellers is.
Good luck with your offer!