Are You a Buyer Looking for an Ace-in-the-Hole?

Here are four important strategies for buyers in today’s market to consider.

In this extremely competitive seller’s market, what strategies do you need to know to secure the home of your dreams?

1. Have a personalized cover letter ready to accompany your offer. Not only does this help humanize the offer, but it also presents an opportunity to connect with the seller on an emotional level. While selling a home is ultimately just a business transaction, it’s still an inherently emotional experience for many, especially those who have lived in the home for a very long time. Knowing the kind of person(s) who will be taking ownership of one of the most significant possessions of their life can bring sellers peace of mind. 

The cover letter can introduce you and any family members (pets included)—pictures go a long way. Also, briefly explain the significance of this upcoming transition, what features you love most about the home, and the role you hope it will play in your family’s life journey.

2. Structure the purchase contract in the sellers’ favor. One example is to offer a flexible time frame to close based on the seller’s moving preference, which could be in the form of an extended closing date or perhaps a temporary lease-back period after closing. You’ll want to take as much pressure off the seller as possible and give them the assurance that they’ll have plenty of time to make their own upcoming move. To many sellers, this type of convenience factor is priceless.

3. Reduce the option period. The option period is your allotted time for inspections and ensuing negotiations. The offer that provides the quickest route to close with the fewest variables will be the most attractive to sellers.

4. Increase the amount put toward your earnest (or “good faith”) money. Doing so shows the seller you’re willing to put more skin in the game and are financially vested in getting a deal done. In especially competitive situations, you can even offer to pay for some of the seller’s closing costs, like the owner’s title policy or home warranty. 

There are a few other options that should only be used in extreme scenarios, but we can have that conversation when the time comes. I hope you found this information helpful.

If you have more questions about buying in today’s market or want to learn more about a specific real estate topic, don’t hesitate to give us a call. We look forward to hearing from you.