It’s March 2022 in New Hampshire, housing demand is at an all-time high and inventory is at all-time lows. Whenever a new home comes on the market, it goes under agreement just a few days later after receiving multiple offers and countless showings. You keep losing to cash offers and are becoming very frustrated. So, what can you do to make your offer stand out? Here are a few tips to put you at the top of the list:
- Utilize Your Buyer Agent
- Make sure your agent calls the listing agent to build rapport and understand what, if anything, is important to the seller. Maybe they need to close by a certain date, or maybe they need time to find suitable housing. It’s about catering to the seller’s needs in this market & implementing that into your offer to stand out. Make sure that you’re working with an experienced buyer’s agent, it does make a difference if your offer is written well & is clear and concise. Always, always, always consult with your buyer agent on each of the points below while drafting an offer. Your buyer agent will have their pulse on the market and the dynamics of the situation that you’re entering into by submitting an offer on a specific property.
- Offer to Cover an Appraisal Gap
- Homes are going for above asking prices and sellers may be concerned about their homes not appraising at the agreed upon purchase price. Offer to cover a gap if there is one, but understand that any money paid over appraised value is cash out of your pocket in addition to the downpayment and closing costs needed to close.
- Don’t have the cash to cover an appraisal gap? Cash is King in this market, if you’re looking for cash to offer to cover an appraisal gap, consider lessoning the amount of money that you’re putting down to free up cash to put towards a potential gap. Before you commit to this, consult with your lender to understand the impact to you by shifting your strategy. Run different scenarios with your lender to fully understand your financial capabilities.
- Every Home is sold in “As-Is” condition. Inspections are designed to uncover major material defects of the home that the seller may be unaware of. Inspections are beneficial for both the buyer & the seller. They can prevent future headaches and animosity between both parties down the road. We always recommend that our clients have inspections done to a property prior to purchasing. What we have been seeing in the field is a lot of buyers waiving inspections or limiting what they may renegotiate for in the event that a major defect is uncovered during the inspection process. We’ve also been seeing buyers offering to perform their inspections in the shortest time possible so that if something unsatisfactory is found by the buyer, it would allow the seller to return the property to the market as soon as possible.
- Due Diligence
- Another important piece of the New Hampshire real estate Purchase and Sales Agreement, the Due Diligence section is designed to give the buyer time to investigate things pertinent to that specific property like easements of record, the deed, the ability to obtain insurance for that property and any restrictive covenants of record. Like the Inspection piece of the agreement, there is a timeline attached to this section. The shorter your timeline, the more attractive your offer looks, but make sure you budget enough time for yourself to effectively investigate the property further.
- Sellers Personal Property
- Sellers always have that large piece of furniture that they don’t want to move. Maybe it’s a piano with no sentimental value or an old treadmill. Maybe the seller inherited the property through an estate and doesn’t want to deal with the furniture left behind in the home. Consider offering for the seller to leave behind any furniture that they don’t want or don’t want to move. This will make their lives easier and your offer more attractive than others.
- Sellers Closing Costs
- Like you, the seller will also be responsible for paying closing costs at closing. Generally, these expenses come out of the proceeds from the sale & the seller receives a “net” check. A large portion of these expenses are real estate commissions. Consider offering a credit to the seller to pay for some of these costs at closing. This credit will just be debited to you at closing and included in the amount of cash you’ll need to close.
- Get Fully Underwritten
- If you’re seeking financing and planning on making your purchase contingent on obtaining financing to purchase a home, you may want to consider speaking with your lender about getting fully underwritten. If you do get fully underwritten, make sure that your agent clearly explains it to the listing agent when presenting your offer. Getting fully underwritten will solidify yourself as a serious buyer & you may be able to offer a more aggressive closing timeline to the seller.
If you found these tips helpful, let us know by shooting us a quick email at [email protected]. If you’re looking to buy or sell your home a property that you own, call/text us at 603-845-8662. We’d love to hear from you!