CONGRATULATIONS! You’ve finally managed to find the perfect Arizona home for you and your family! What’s more, you’re willing to pay the asking price! Should be a sure thing, right? Not necessarily…
A seller’s market – such as the current real estate market in Arizona – means there are more buyers than there are available homes for sale. So, your full-priced offer might not cut it because most homes in the Valley of the Sun are receiving multiple offers right now.
Fear not though, there are some insider tricks that could help your offer become ‘the chosen one!’ Here are some tips from the Donnelly Group that might push your offer to the head of the line.
Make Your Offer As Clean As Possible
A clean offer shouldn’t be contingent on the sale of another property. It’s also free of seller concessions. Seller concessions are things that a buyer asks for outside of the offer price, such as help with closing costs, asking for a home warranty, etc.
Avoid Asking For Personal Property
You may want to ask for the seller’s patio furniture with your offer…but…if your offer happens to be similar to another offer that doesn’t ask for personal items, you could lose out. Remember, your main goal is buying the house, not keeping the seller’s personal items.
Offer Above Asking
This is not the time for making low offers. If you’re serious about buying a home in today’s market, especially in Phoenix and the East Valley, you’ll have to make your offer strong enough to beat out the competition. Don’t let the thought of offering over asking price alarm you. A few thousand dollars more won’t significantly affect your mortgage payment, but it will make your offer more attractive.
Put Down A Stronger Earnest Money Deposit.
Your earnest money deposit is proof that you’re a good-faith buyer. Your earnest deposit contributes to your down payment anyway, and a larger amount down shows that your intentions are genuine.
Add An Escalation Clause To Your Offer
An escalation clause allows your offer to outbid others up to a maximum price. It stipulates that your offer will be increased if a higher offer comes in…up to a maximum amount.
Waive The Appraisal Contingency
This one poses the most risk, so make sure you have enough cash to cover any potential shortfall between the offered price and the appraised price. However, this is a huge one for sellers as they won’t have the worry of their buyer cancelling if the appraisal is lower, and it proves that you’re in a strong financial position.
Make A Larger Down Payment In Your Loan Program
Offering a larger down payment stands as a sign of good faith to the seller. It also sends the message that you’re a serious buyer and capable of meeting all your financial obligations.
Shorten The Due Diligence Period
As a buyer, you’re given a 10-day period to perform your inspections. It gives you the opportunity to back out of a contract if serious defects are found in the property. A shortened inspection period is attractive to sellers as they will spend less time off the market if the buyer does back out.
Write a Personal Letter To The Seller
This is a simple way to increase your odds of getting your offer accepted. While some care only about the price, many home sellers are emotionally attached to their property and want to make sure it will be in good hands. A personal letter may make the difference in close bidding situations.
The Bottom Line
These things can go a long way to making your offer stand out. Establishing that you’re a serious buyer with the financial capability to meet your financial obligations is music to a seller’s ears. Going the extra mile can put your offer ahead of the crowd, and that’s just what you need if you’re trying to buy a home in metro Phoenix right now!
Contact The Donnelly Group Today
If you’d like help buying the home of your dreams in the most challenging homebuyers’ market Phoenix has seen, put an experienced Realtor® in your corner. If you would like the Donnelly Group to help push your offer to the front of the pack, call 480-792-9700 or email us today.