HERE ARE MY TOP 3 TIPS TO STRATEGICALLY PUT YOU IN A BETTER POSITION TO GET YOUR OFFER ACCEPTED.
Buying a home can feel like a daunting task, especially if you’ve been at it for a while. For those of you that live in Los Angeles, you know exactly what I’m talking about. On average, a three bedroom, two bath home will cost you about a million bucks, depending on the neighborhood. And, if you’re lucky, it only needs a little fixing up. However, most of us will agree that when you find a home that meets your budget and needs the open house is flooded with dozens of prospective buyers. Ugh! Your brain screams out, “NOT AGAIN”! Your heart sinks, because you know this means – “Let the bidding war begin”.
You tell yourself, “I’m so tired of this”and you contemplate if you should even make an offer. Sound familiar? If you feel this way, you’re not alone.
So, how can you approach your next offer differently to strategically put yourself in a better position to have your offer accepted?
Over the past decade that I have been in real estate, I have worked with many clients that have been in this exact situation and what makes the difference is what I’m about to tell you next.
Most buyers and their agents are only thinking about price when it comes to making a strong offer, but what if raising your offer price isn’t an option for you? Here are my top 3 tips to help you strategically put yourself in the best possible position to get your offer accepted.
- Consider house hunting during October, November, December & even January. Why? Because most buyers are in holiday mode. You will find that only serious buyers are looking during holiday time and therefore, you have less competition. And, with less competition, your odds will increase significantly.
- Make your offer attractive to the seller. What do I mean by that? Consider paying for some customary seller items. For example, the city occupancy report, required retrofit items for the home (smoke detectors, carbon monoxide detectors etc.) or city transfer taxes. If it’s a condominium, consider paying for the HOA document preparation and transfer fees. Most of these items don’t cost that much and by eliminating the responsibility from the seller it will make your offer stand out from the others.
- Be aggressive with contingencies and time periods. Contingencies have a state standard time period built into the contract, but those can easily be changed. Consider changing your inspection contingency time frame from 17 days down to 8 or 10 days. And, if you are up against a cash offer, consider writing your offer without an appraisal contingency. Yes, I know this is risky, however, working with a great Realtor that can support the price you are offering with market data, should ease your mind and let you know that you are in the value ballpark. In addition, make sure that your lender can get the appraisal done within your 8 or 10 day time period so that if it doesn’t come in at value, you can use your inspection contingency to back out of the deal without losing anything.
These tactics have worked well for my clients over the last few years. Most recently, I was able to help a client get their offer accept over multiple other offers when the house fell out of escrow with its first buyer. We wrote an offer with a 30 day free rent back to the seller (their new purchase wasn’t going to close at the same time their sale would) and offered a quick 2 week close, a 5 day inspection time frame and we did not ask for repairs of credits. In addition, I was also able to negotiate a reduced price by $50,000 bringing the total purchase price down from $1,149,000 to $1,100,000! This price reduction was asked for but NOT given to the first buyer because their terms and negotiation tactics were not favorable to the seller (according to the list agent).
With more buyers out looking for homes to purchase than there are houses for sale in Los Angeles, you need to really be aggressive with your strategy. Make sure you and your Realtor are on the same page when it comes to a house hunting strategy. When interviewing a Realtor ask the question, “what is your buying strategy for your clients?” before signing on to work with them. This will give you a good idea if they are the right fit for you to work with.
For more information and photos of the above home sale mentioned click Laura’s Sold Properties to view all details.
Please let me know if you found this post helpful by commenting below. You can also reach out to me for more tips on how to buy a home in Los Angeles on my website www.LauraTsellsre.com or text me (310) 919-8375. Happy house hunting!