How To Get Your Offer Accepted

The real estate market in the Central Ohio area is competitive.  I think by now, we all know we are in a classic seller’s market when it comes to residential real estate. For every house on the market, there are four ready, willing and able buyers if the house is priced correctly. If the house is well maintained, updated and priced at or below market, there is a good chance the property will receive multiple offers when it hits the market.

Even with higher interest rates and affordability issues, there are still plenty of buyers for a house that has a new kitchen and bath, updated flooring and fresh paint if it’s priced well.  If all are true, offers will be for more than asking price and sellers get to determine the conditions of an acceptable offer.

If you are a buyer, how do you compete with other offers to get your offer accepted?

Residential contracts are filled with contingencies and most contingencies protect the buyer (mainly because lenders want to protect their interests) and the less contingencies, the less risk for a seller.  The first contingency is usually financing.  If a buyer has the means to pay cash, that removes a huge barrier.  I’m seeing parents pay cash for a house for their kids and then the kids get a mortgage after.

If you cannot pay cash (like 80% of all real estate contracts), you must have a solid preapproval from a reputable lender.  The preapproval can or cannot be fully underwritten (ask me what the difference is) and I suggest a local lender as opposed to an internet lender.  I always ask my lenders to call the listing agent to back up the preapproval with a verbal verification of the soundness of the buyer.

Next and most important, tell your buyer’s agent to ASK what is important to the seller.  Hint, it’s not always the most money. Sometimes seller needs extra possession after closing, sometimes they have trouble removing items from a house…you never know until you ask.  The other piece of mind a seller is looking for is assurance that you can purchase in case the house does not appraise for the price the buyer is willing to pay.  This is becoming more and more common in multiple offer situations.  Buyers need to be able to have “appraisal gap” coverage.  The concept is more complicated than I want to get into here so ask me about it.

Another contingency of concern for a seller is a home inspection.  Some buyers are removing the home inspection contingency.  To me, this is a step too far for a buyer.  I will never allow my buyers to forgo an inspection unless they sign a waiver.  A common method being used in this competitive market is that buyers are purchasing “as is” or set limits on asking for repairs.  Per the inspection contingency, buyers have the right to terminate so they are not stuck if the inspection reveals more issues than they were prepared for.

Along with paying cash, provide appraisal gap coverage, purchasing a home “as is” and providing free possession for a seller after closing, don’t ask for home warranties or items a seller might want to keep (i.e., mounted tv’s, swing sets, washer and dryers, etc.).  Have your agent write positive feedback after showing the property with a personal touch, for example “my buyers loved the house as well as the décor and pictures of the kids with the dog”.  Sellers always see the feedback and if other offers are the same, they will remember the positive feedback. 

There are many other ways to make your offer stand out, and a good seasoned buyer’s agents (like me!) can help you navigate through the multiple offer process.