How do you make a winning-knockout offer in a highly competitive real estate market when nobody knows you?
Imagine that you finally found that perfect home and after you made an offer you discovered that someone else has placed a bid on the same home.
What a tragedy it would be if you lose the home because your offer was not attractive enough. A huge real tragedy I must say.
The housing market goes back and forth between being a buyer’s and seller’s market often. It is important that your real estate offer be attractive in any market and there are a few ways to make it happen.
Making a Hard-to-Resist Offer
Your offer to buy a home needs to the best the first time you present it to the seller. Here are some ways to make a hard-to-resist real estate offer happen.
• Be Sure to Put Your Best Offer on the Table First
Every other buyer is going to do the same tactic. You will want to have your bid in first so the seller can make a decision quickly.
If your bid is the first one and it is your best, then your bid becomes the standard that all other bids must meet.
Some people have even been known to place an expiration date on the offer so it motivates the seller to act quickly.
• Deal with the Right Agent
Some agents can be a bit lazy when it comes to real estate transactions. They often will wait a day or two before typing up the bid and submitting it to the seller.
You would want an agent that is willing to place the call with an offer at almost the same hour that you present your bid.
There is a city full of agents trying to sell that same home and the last thing you want to have happen is to lose it because of a slow-moving agent.
• Ask Questions about Why the Seller is Trying to Sell the Home
There is a good chance that they are trying to move for work, looking for a smaller home, or even a tragic event.
This information can work in your favor. If they are looking to move quickly, then there is the possibility that any offer will work.
They might be looking to pay off the mortgage so they can be out from under the home.
A good agent is more likely to know this information and be able to relay it to you without much effort.
• Show that You Are Looking to Do Serious Business
Handing over an offer letter or providing a large amount of earnest money is a great way to get their attention.
Even if your offer is lower than some others, just the fact that your earnest money is higher may mean you getting chosen to buy the home.
If you haven’t moved beyond the preapproval realm with your lender, you might want to get that solved right away. Having cash on hand is a strong attraction for sellers.