This spring it's not uncommon for listings to receive as many as 10, 20 or sometimes even 30 offers. And when this happens the offers become extremely competitive. Of course buyers are competing with their offer price, but they're competing in some other key ways, too. Here are 4 key terms that many winning offers share when the bidding is especially fierce.
The most competitive offers in 2021
Buyers are waiving their home inspection contingency. When the competition is especially fierce, some buyers are choosing to forego a home inspection. This isn't something that we advise our buyer clients to do. Nonetheless, offers without home inspection contingencies are relatively common when listings attract a dozen or more offers.
Buyers are waiving their appraisal contingency. With prices rising so quickly, some buyers are appealing to sellers by bringing more cash to closing in the event that the appraised value comes in lower than the contract price.
Buyers are paying the seller's real estate taxes. Prior to this year, the seller traditionally paid their portion of the property taxes at closing. Now, some buyers are offering to pay the seller's pro-rated taxes at closing in order to sweeten their offer.
Buyers are closing on the property and then renting back to the seller for a week or two. Some buyers are writing this provision into their offer in order to simplify the seller's move and appeal to the seller's need for convenience.
More thoughts on writing a competitive offer
Every negotiation is different and there are still plenty of winning offers that don't include any of the above concessions. That's why it's important to work with a professional buyer agent who will help you gauge the competitiveness of each negotiation and craft an appropriate offer.
For more buyer tips in this year's ultra-competitive market, check out our article on 26 ways to write a winning offer. Or reach out to your favorite Mad City Dream Homes realtor. We're always available to talk real estate and share our best advice for buying and selling in this year's unique market.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred