Here’s how you can make your offer stand out in our crazy market.
As you probably already know, we’re living through a crazy seller’s market right now. If you’re a buyer, how do you compete? Today we want to give you our best advice to make your offer stand out in a competitive market.
If you want to make your offer more competitive, the best thing you can do is offer in cash. This is because cash offers have less risk and fewer strings attached. In our experience, cash offers get accepted more often because they are more likely to close.
So why do cash offers have less risk than financed ones? Financed offers come with contingencies, including the inspection, appraisal, and financing contingency. We usually don’t recommend you waive your inspection contingency; it’s very risky. However, you can lower the length of the inspection period to reassure your seller.
Typically, financed offers require an appraisal since they’ll only pay for what the home is worth. If the home appraises at a lower price than your seller wants, you can always offer to pay the difference, or the appraisal gap, in cash. This way, you can take advantage of financing while offering less risk to your seller.
The last contingency is the financing contingency. If you can get rid of this contingency, your offer will be much stronger, but this isn’t an option for everyone. Talk to your lender and your agent about what makes sense for your situation.
Which contingencies you decide to waive or edit can be a complicated topic, but it can also be the difference between your offer being accepted or not. If you have any questions, please call or email me or my team. We are always willing to help.