Recently on CNN news, they stated that due to median house prices rising and lack of inventory, households earning between $75,000 – $100,000 per year only had an average of one affordable house to choose from for every 65 listings. This is a national average, but feels pretty accurate here in the Augusta area.
The competition is extreme. If you are a buyer, always put your best offer forward. There are things that a seasoned agent will avoid accepting on offers.
Here are a few tips that will make your offer more desirable.
First, it is absolutely imperative that you are able to pay all your own closing costs in this market. The seller really is persuaded by the receiving the highest net proceeds, and asking for seller paid closing is a BIG NO-NO in this market.
Secondly, minimize or eliminate the due diligence period/inspection period. This time is a big risk to the seller because you can back out during this time. Sellers want a “sure thing” when they accept an offer. Another piece of this “sure thing” would be to use a reputable, local lender if you are getting a loan, and make sure you send in a qualification letter with your offer.
Third, make sure you choose a closing date that is 30 days or less away. The seller typically will not want to wait any longer than this.
Those are items that could have a financial impact on you based on the timing and house condition.
Here are a few other things that will make your offer stand out.
Increase your earnest money deposit. This is your money, essentially “pre-paid” ahead of the closing, it shows how serious you are about the property.
Eliminate all special stipulations and extra pages. Offers that are wordy and have a ton of extra things the seller needs to do or provide are overwhelming and unnecessarily complicated.
Know the sellers specific requests and apply them to the offer. They may have stated they prefer a local attorney or need a specific closing date. Be aware of these things and be willing to oblige.
The bottom line is that when you make an offer, make sure it is the best you can do from the start and make it clean and simple.