Trying to buy a new home in a boom property market can be frustrating and, as an experienced agent, I totally get it!
Every time you roll up for a walk-through, the seller’s agent can make you feel like half the world wants this particular piece of real estate.
But have no fear.
Whether you’re buying an apartment, condo or house, a few cleverly-pitched strategies can put you ahead of rival buyers.
These are four of my favorite plays to help give you the best chance of striking a deal.
Sweeten the deal
Boosting your earnest money when making an offer will grab the seller’s attention. Even nudging it to 3-5% of the property’s value will demonstrate your legitimate interest in a deal. This is a great tip when a lot of potential buyers are in the frame. And you won’t be out of pocket in the long term because all the cash you put forward goes against the sale price.
Prove you’re serious
Everyone says they’ve been pre-approved for a loan, but you can do better than that. Ask your lender for an approval letter, which you can show to the seller. Also known as a commitment letter, it will state that you’ve been approved for a specific type of loan, its interest rate, amount, and terms and conditions. It’s not as good as cash, but it trumps a pre-approval.
Jump on an escalator
If you’ve found your dream home, make sure you add an escalator clause to your offer. This means that along with stating your bid price, you will propose to increase it if the seller gets a better offer. Of course, you can put a ceiling on this. Don’t get carried away, though. You don’t want your escalator to take you beyond the property’s market value.
Lease it back
When you’re buying in today’s market, it feels like the seller has all the power. Once they’ve accepted your offer, that situation is reversed. The seller now has to win their next property against motivated buyers. Make your offer more attractive by easing that pressure. Tell the seller you’ll lease back the property until an agreed date, which will give them more time to move one.