Let’s say you have found the perfect house and you’re getting ready to put in an offer. You’re starting to picture yourself in your new home and planning how you’re gonna pack up everything and move. Then, out of nowhere it seems, a second offer is placed on your dream home. What are you going to do? You are still going to make that offer, but you’re going to make an offer the seller can’t refuse and this is how.
Find out the seller’s motivation. Anyone who is selling their home has a purpose to do so and if you want to make an offer that is enticing, you’ll find out their motivation. There are three categories in which sellers’ motivations usually fall into, money, a rushed move, and emotional attachment. The best way to go about this is to have your agent call the seller’s agent to find out why the house is for sale. Although your agent may not be able to find out everything, it’s worth a shot.
If the seller is motivated by money, be prepared to spend a little extra. Experts say that buyers should be prepared to spend about $100,000 above the asking price in some markets. If you’re the first to make an offer, work with your agent to find out how much homes have recently sold for on the same block. Some sellers today want a buyer’s best and highest offer, at that point, the buyer only has one, maybe two, chances to impress them.
If the seller is motivated by terms that means they want a quick and pain-free sale. In this case, you’re going to have to give up some contingencies, which can slow down the selling process. Many sellers who are looking for a quick sale will offer a home inspection report and if those reports are clean, sellers should waive their right for inspection.
If they are motivated by emotions that means the sellers are saddened by their move. If this is the case it would be best to write a personal letter to the sellers. They may feel better selling their beloved home if they know a little bit about the buyers, what they do for a living, and what their future plans in the home will be.
Now that you know the motivations behind the sale you should act quickly. The quicker the offer the better. If you’re not the first, you better make sure you submit a solid offer in a timely manner. Don’t get too cocky with your offers, submitting an offer that is significantly lower than asking price may irritate the seller and they may no longer work with you.