There’s nothing more disappointing to a real estate buyer trying to bid in a hot real estate market than being constantly outbid. Here are some tips on how to make the best offer in a seller’s market.
Make The Best Offer In A Seller’s Market
Nothing scares a seller more than buyer contingencies.
Obtaining financing, property inspections, and having the down payment and funds needed to close are all examples of normal contract contingencies.
But in a hot real estate market the seller can call the shots. That’s why smart buyers know that to make the best offer in a seller’s market, the fewer contingencies the better.
It’s Not Just About Price
Sure, the sales price of the property being sold is important. Sellers usually want to sell their home for the most money.
But before the seller can get their money, the transaction has to actually close.
So from that perspective, it’s not always about price. It’s more about the buyer’s ability to actually close the deal rather than having it tied up in escrow and then falling out at some point.
For example, everything else being equal, a cash sale would be better than financing.
But if there is financing involved, is as much proof provided as possible that the financing won’t fall through and/or has the buyer waived that contingency?
Buying a property ‘as-is’ is another technique that buyers can use to make the best offer in a seller’s market.
But this doesn’t mean you have to accept the property with all of its flaws. Nor does it mean that the seller doesn’t have to disclose any known issues or defects.
As-is simply means that the buyer isn’t supposed to ask for any repairs or concessions from the seller if there are defects found. But, the buyer can still walk away from the transaction.