Studio Four8 discusses some of the techniques we use on how to make your offers more competitive in this hot real estate market.
Ep 1 | Initial Offer Price
Hi I’m Sara Maddock with the Studio Four8 partnership of Berkshire Hathaway HomeServices Snyder & Company realtors and I’m here to talk about how to make your offer more competitive in a hot real estate market. The most obvious thing to do is to offer more than list price on the property. Buyers always ask how much more should I offer? What is typical? And the answer can be hard to get to, but basically it depends. It depends on the house, it depends on how many other offers there are, it depends on how long it’s been on the market, and it depends on how much you love that house and likely it is that another house that meets your needs is going to come up soon. A skilled buyer’s agent is going to work to create a professional market analysis and share that with you, so that you have a good understanding of what the value range for the property is. So that’s step one. One of the concerns that people have is how much more it’s going to cost and you should keep in mind that a $10,000 price increase might only equate to $50 or less in your monthly payment. So don’t lose that house over a few thousand dollars if it’s going to make a difference in you getting the property. Now the only concern might be will the house appraise for that much?
Ep 2 | Appraisal Guarantee
Hi I’m Dan Kurylo with the Studio Four8 partnership of Berkshire Hathaway HomeServices Snyder & Company realtors. WIth part two of our series on how to make your offer more competitive. If you’re dealing with a mortgage you’re going to have an appraisal to deal with. Something that can give you that extra edge is guaranteeing the difference between a low appraisal and the sales price in cash. Now that often ends up as a secondary negotiation between yourself and the seller, but you could be on the line for several thousand dollars on the lease. That being said, that might be the difference you need to get your offer accepted in a competitive market.
Ep 3 | Escalation Clause
Hi this is Jeffery with Berkshire Hathaway HomeServices Snyder & Company realtors. With part 3 of our panel on how to write a more competitive offer. An escalation clause in a contract means you’re willing to pay above and beyond your offer price. There are two different kinds of escalation clauses, escalation clauses with a cap meaning you won’t go above a certain price or an uncapped escalation which means the sky’s the limit. This is saying if any competitive offers come in you’re willing to pay 1,000, 2,000, 2,500 over that competitive offer up to your cap or the sky’s the limit. This can make your offer very, very, competitive. You will have to initial any escalated offer that becomes first position. This is a great way to make your offer more competitive.
Ep 4 | Other Terms and Conditions
This is Todd Waller with Studio Four8 at Berkshire Hathaway HomeServices Snyder and Company Realtors, with the fourth in our series of how to make your offer more competitive in today’s market. So the final video we have here is all of those other terms and conditions. When we talk about all those other terms and conditions we are talking about things that are sort of intangible. Number one: work with your agent. Your agent can talk with the seller’s agent to figure out what’s really important to the seller and advise you on what is the best way to roll there. One of the things that may come up that we see frequently is post close occupancy. Maybe the seller needs to stay after closing for moving concerns or something like that. If you have the ability to offer that and that’s important to the seller that might just work. Another thing we’ve seen that works very well is maybe it’s worth your time to pick up some of the traditional sellers’ costs, like transfer taxes and things like that. Sometimes increasing that bottom net line for the seller is also the winner in a multiple bid scenario. And Finally one thing you may hear from some agents is to eliminate your inspection. We do not recommend that you eliminate your inspection contingency. You need to know what you are walking into. So still reserve yourself the time to go ahead and have that home inspected.