4 Tips for Buyers Navigating a Seller’s Market

Baltimore Real Estate Podcast with Seth and Alyce Dailey

Here are four ways to ensure a seller takes notice of your offer, even when multiple are on the table. In a seller’s market where the field is crowded with buyers, many on the sidelines are left to wonder if it’s even worth it to try and compete. When inventory is particularly low, it’s not unusual for sellers to receive a bunch of offers. It’s almost always a good idea to write an offer nonetheless. Here are four tips to make your offer outshine the rest in such situations: 1. Submit a larger-than-normal earnest money deposit. Pending home sales don’t always pan out. Upon accepting an offer, many sellers worry that their buyer might back out of the transaction or default on the contract, leaving them with no fallback option because the formerly interested buyers have all moved on. By raising your earnest money above the baseline requirement, you’re letting the seller know that you’re serious about closing. Think about it this way: It’s money you’d pay the seller at some point anyway. Why not offer it a bit sooner? 2. Show the seller you’re qualified. Nearly every offer in a multiple-offer situation will be accompanied by a pre-qualification letter. To truly set yourself apart from the rest, go to your (preferably local) lender and ask for a pre-approval letter. Pre-approved buyers are the most favorable option in the eyes of a seller. “In the end, a home’s worth simply depends on what a buyer is willing to pay and what a seller is willing to accept.” 3. Give the seller time to move. Buyer possession is often a sticking point. It’s difficult enough to juggle multiple closings between the sale and purchase of a new home all at once, and no one wants to show up to closing in a moving truck if it’s avoidable. After closing, go easy on your demands and allow the seller two to three days to move out of the home without expecting compensation or by renting it back to them at a minimal cost. 4. Write your best offer. Rather than crossing your fingers for negotiation, make your first offer your best offer. Ask your agent to do a comparative market analysis on the home, and based on the price they come back with, make your offer a little more enticing by going above list price. Some sellers list their home below market value to drum up multiple offers, so even though it seems like you’re offering high, your offer might be in line with the home’s actual value. In the end, a home’s worth simply depends on what a buyer is willing to pay and what a seller is willing to accept. If you have any questions about purchasing a home in today’s market or about real estate in general, please give us a call at 800-214-1245 or visit our website at TheDaileyGroup.com. The Dailey Group is here to help you and those you care about move with confidence!