The real estate market has been intensely competitive over the past couple of years. Homes are receiving multiple offers within days or even hours of listing. With inventory so low and demand so high, buyers need creative strategies to make their offers stand out.
There are a few ways that you can sweeten your offer to increase your chance of getting the property that you want.
Be flexible with your closing date
Sellers often want to close quickly, so they can move on to their next home. Consider offering a shorter closing period than the standard 30-45 days. Propose a 2-3 week closing timeline to give yourself an advantage. Just be sure you can secure financing and complete inspections within the expedited schedule.
Waive contingencies
Lenders require home inspections and appraisals to approve financing. However, you can waive your right to back out of the deal based on inspection results or a low appraisal. This signals to sellers that you are serious and committed. Be aware that waiving contingencies is risky if major undiscovered problems appear later.
Offer an escalation clause
An escalation clause allows you to automatically increase your offer if another buyer submits a higher bid. For example, your offer could stipulate you will pay $5,000 over the next highest offer up to a capped amount. This shows you are willing to be competitive while still protecting yourself from overpaying.
Sweetening your offer can help it stand out. Just carefully weigh the risks before waiving standard protections. With persistence and creativity, you can get your dream home even in a competitive market.