If you want to stand out in today’s market and secure the home of your dreams, you’ll need to submit a solid offer from the get-go.
Ready to start your home search off on the right foot? Get in touch with me today to gain a competitive advantage as a Raleigh buyer!
5 Easy Ways to Get Your Next Offer Accepted
If you’re a buyer in the busy Raleigh, North Carolina marketplace, you are likely frustrated due to the low inventory of homes available, as well as the competition between other buyers for the same properties. Not only are you competing with others in the area, but you’re also dealing with out-of-state cash buyers offering over list price for the homes you are interested in.
Wondering what can you do to make your offer stand out in this seller’s market? Here are five tips to help your next offer get accepted.
Be prepared to offer above asking price
Although the Raleigh home you are interested in may be priced at the right market value, low inventory and high buyer demand will likely push prices even further than expected. Be prepared to come in with a strong offer—potentially over list price—in order to gain the winning advantage.
Most Raleigh sellers expect you to make your best offer right out of the gate. If the offer is strong, it likely won’t be countered, and there’s a better chance that it will be accepted. And best of all, you probably won’t see an impact on your monthly payments due to record-low mortgage interest rates.
Splurge on due diligence
It’s crucial to show the seller you are a serious buyer by presenting an offer with a non-refundable up-front deposit. In North Carolina, we call this money “due diligence,” which is given directly to the seller. If you walk away from the deal, even if it’s because the home doesn’t appraise or requires significant repairs, you lose the deposit. If you go through with the purchase, this up-front money will be credited to you at closing. Not only does this show you’re committed to purchasing the home, but it also tells the seller that you have the funds in-hand to pay the shortfall if the home does not appraise.
Consider an appraisal addendum
Thirdly, include an appraisal addendum with your offer. This addendum tells the seller that you are committed to purchasing the home even if the appraisal is lower than the offer price. While you may end up with a higher down payment, your lender will base your mortgage on the appraised value if it’s lower than the purchase price. If you have the extra cash to cover the appraisal gap, then you are putting more money into the home which keeps your mortgage payment at an amount you are qualified for and comfortable with.
If the home you’re interested in is occupied, offer to allow the seller to stay in the home after closing. If you have the flexibility to push your move-in date out by 30 to 60 days, you are giving the seller an opportunity that other offers may not include. And best of all, this additional provision is not a costly concession in most cases. Your mortgage payment is not due for at least 30 days after closing, and the seller may agree to compensate you in rent if they need more time to move.
Keep it simple
Finally, make your offer clean and simple. Do not include any unnecessary contingencies in your offer. If you do have to sell a house, consider Knock Home Swap, a loan program where you can buy before you sell. Knock Home Swap is available to property owners in the Raleigh, North Carolina market. Do not add provisions for including furnishings, and do not ask upfront for repairs or a warranty—you can negotiate these once you are under contract. Ask a professional Realtor for help, as this Raleigh market is challenging to pursue without an agent. Your agent will be knowledgeable about the local market and can help you prepare the most competitive offer.