Alright, this is it! You’ve already learned about how to price right and how to work with a lender to write a competitive offer in my previous posts. Now let’s take a look at a few more final strategies you can explore to make your offer on a home as competitive as possible:
1. Title Closing Fees: A title company’s closing fee (about $450) is typically split between buyer and seller per the purchase contract. You can choose to pay for the entire amount and help net the seller a few extra dollars. Your upfront closing costs will be higher, but you’re helping the seller make more money at closing without raising your purchase price.
2. HOA Change Fees: HOAs typically charge a fee for the status letter updates required from title. In the contract, you have the option to pay for these fees for the seller.
3. Dates: There are many dates/deadlines put into the contract to help protect the buyer during the course of the transaction. As the buyer, you can choose to have those dates/deadlines input in a way that shows the seller how serious you are (quick loan termination date, for example). You can delete any that you’d like as well – but you have to understand the potential consequences. Deleting the Loan Termination deadline is a huge way to stand out because this is usually the last objection date before closing.
4. Specific Performance: You have the option to check this box in the section that describes what happens if you default on the contract. All of your rights/objections still exist, but the seller can sue you to buy the home, for damages, etc., in addition to keeping the earnest money if you default. This shows that you are serious about the contract, will keep everything on track, and that you are solid in your financing qualification.
In this 3-part series about competitive offer strategies, we’ve covered 13 strategies you can consider when encountered a multiple offer situation. These are tips and tricks that I’ve seen bring buyers success in our Denver area real estate market. As always, because these involve the contract, which is a legal document, you are always advised to consult an attorney.
Is there anything else you’ve seen that’s been a creative way to stand out? Is there anything more you’d like to discuss about these strategies? Contact me today! I’d love to hear from you.