In 2021, the real estate market has become very competitive across the country. Homes are selling in record time and for above-asking prices. In the Rollingwood housing market, some homes for sale have pending offers in a mere nine days.
When the housing market is competitive, it’s considered a seller’s market. According to Rocket Mortgage, a seller’s market is one in which demand exceeds supply. As a result, sellers can sell their homes for higher prices, sell quickly, and receive multiple offers for their homes. Buyers rarely have the leverage to negotiate in a seller’s market.
Potential homebuyers are finding themselves in seller’s markets all across the country. Read more below for tips on how to navigate a multiple offer scenario as a seller.
Put More Down for Earnest Money
The standard earnest money deposit is usually 1-3% of the home price; however, putting down more earnest money can show a seller that you’re more serious than other buyers.
If you are serious about purchasing the home, putting down a larger earnest money deposit doesn’t disadvantage you, since this money will go towards the purchase price of the house.
You will want to make sure you’re working with an established and experienced real estate agent who can assist you in picking the right home. You also want to have a professional home inspector qualified by a nationally recognized organization on speed dial.
Once you put down your earnest money deposit, you’ll only have a small window of time to have your home inspector perform the inspection and report back results before you lose out on your earnest money deposit.
If the home inspector finds a structural issue or any other type of costly problem, you will want to pull out of the deal. You don’t want to find yourself in a situation where you’ve put down a sizable sum of money only to lose it if you find out after the contingency period has passed that there’s a significant issue with the home.
Offer More than Asking Price
In addition to offering a larger earnest money deposit, you can also provide more than the asking price for the home. According to Redfin, over 64% of homes in Rollingwood sold for over the asking price — an increase from the previous year. Expect to pay more money, but fortunately, you likely won’t have to pay a sizable amount of money over the asking price. If you offer 1-2% over the asking price, that could be enough to win a bid for a home amongst several other competing offers.
Write a Compelling Offer
As we mentioned above, you will not have much room for negotiations in a seller’s market as a buyer, so you’ll want to write a compelling offer. This is where you’ll want to enlist the services of an experienced realtor. They can assist you in writing a proposal that puts your best foot forward. A realtor can perform a comparative market analysis on the Rollingwood housing market to determine the best price to pay.
In addition to offering more money, work with your realtor to find out what would seal the deal for the seller and offer to accommodate them in your written offer. Lastly, expect to write a counteroffer and again work with your realtor to successfully negotiate the deal.
Shorten or Waive Contingencies
While you always should have a contingency period for home inspections, you can offer to shorten or waive it. If you are looking to purchase a new home or a nearly new home, it may be worth waiving the contingency period and taking on any risk. If that’s not possible, you may offer to shorten the contingency period from 10 to five days. As long as you have an experienced home inspector who can come out right away to inspect the property, you can offer this as a bonus, but still, make sure that there are no major red flags with the home.
Allow the Seller More Time to Move Out
Another thing you can offer to sweeten the deal is more time for the seller to move out of their home. In a seller’s market, offers and closing periods move fast, putting undue strain on families to quickly find a new home or place to rent, pack, and move out of their homes. Offering an additional month or so to the seller to move out of the house can alleviate stress for them and make your offer the winning bid.
Rely on a Real Estate Agent’s Expertise
All in all, if you’re navigating the competitive Rollingwood real estate market, you’re going to need to rely on an experienced realtor. They can provide you with a list of Rollingwood homes for sale, help you determine what purchase price to expect for what you’re looking for, and help you to write and negotiate the best offer in a multiple offer scenario.
Most importantly, a trusted real estate agent like Ben Baronet can prevent you from getting into a bidding war common in a multiple-offer scenario. The last thing you’d want is to significantly overpay for a property