Here’s what to do if you find yourself in a bidding war for a home.
Ours is a very competitive market, and many homebuyers today will find they have quite a bit of competition due to our low levels of inventory. That means buyers will have to do all they can to make their offers stand out to the seller if they want to win the home they’re after.
One way to do that is to include an escalator clause. If you choose to incorporate an escalator clause into your client’s offer, you need to first educate them about how it works. In short, it’s a clause in the contract that allows your buyer to outbid the next highest bid by a certain amount. Of course, buyers probably don’t want to overbid their competition by, say $20,000, which is why escalator clauses also include a cap amount. This is one of the strongest tools we have in our arsenal to help our buyers overcome their competition. Cash offers are also a strong way to grab a seller’s attention.
We’ve seen a lot of home inspections come back with miles-long lists of repair requests, which tends to make sellers nervous. So if you shorten the home inspection period, your buyer will be in better standing as well.
Finally, have your buyer frame their closing date around the seller’s needs to show that they’re accommodating and willing to work with the seller’s timeline.
If you have any other questions about how to strengthen your buyers’ offers amid their competition, don’t hesitate to reach out to the Timothy Schutte Real Estate Team. We’d love to help.
