Unless you can make a cash offer, sometimes it’s necessary to make an effort to make your purchase offer more attractive to the seller when you really want that home for sale in Irvine, CA, and you’re facing competition. Sometimes this involves offering more than just money to get the seller to choose your offer over others. Here are some strategies you can use to make your home offer stand out from the pack.
Alter the Inspection Contingency
A standard purchase offer asks the seller for 15 days in which to inspect the home, but you don’t need this long. Along with lowering the timeframe for completing the inspection (and thereby speeding up closing), you may want to have an as-is inspection contingency. This option allows you to learn about the condition of the home or Irvine condo for sale while the seller is reassured knowing you won’t ask for repairs. If you do not like the results of the inspection, you can withdraw the offer and back out.
Add an Escalation Clause
Many homebuyers mistakenly think they can hold off their best offer for the end once the seller has presented a counteroffer. This strategy can backfire if the seller gets a higher offer and rejects yours without negotiation. If you’re worried about multiple offers, consider adding an escalation clause. An escalation clause will say that you will increase your offer by a specific dollar amount over any other offer to a certain limit. With this option, the seller can see you are willing to pay more for the home if there is another offer, but you will not risk offering more than necessary.
Make a Non-Contingent Offer
Most home offers are contingent on the buyer obtaining financing or the home receiving a satisfactory appraisal. If these contingencies aren’t met, the buyer gets their deposit back. Waiving one or both of these contingencies can increase the chance that your offer will be approved, even when you’re competing against cash offers, but it’s not without risk. Do not make a non-contingent offer unless you can afford it. If the appraisal comes in lower than the purchase price, for example, you will need to pay the difference because the lender will not offer a mortgage for more than the appraised value of the home.
Don’t Ask for Credits or Extras
Many first-time buyers ask the seller to pay all or some portion of the closing costs, reducing the net purchase offer. While this may work well in a buyer’s market, your offer may get thrown out right away if the home receives multiple offers. You can make your offer more attractive by paying for extras like closing costs and home warranties without asking for credits.
Work with an Experienced Real Estate Agent
An Irvine real estate agent with experience and knowledge of local markets can help you make your offer stand out against the rest. They’ll also put you at ease during the process, right down to the time you sign on the dotted line. For more information, feel free to give us a call at (714) 454-6304.