If the definition of “Hot Listing” in your market means there was a recent house fire, and there are NOT numerous multiple-offer situations nearly every day, you have my sympathy.
But if you’re shopping for Bellingham real estate – where just last week I had a client close on a sale on which she’d beat out 5 other offers – you better be well-versed in how to super-charge your offer with these Top 6 Ninja Buyer Strategies!
1) Be pre-approved by a real, local bank!
The pre-approval process is SO critical in this age of lender scrutiny. It’s a true measure of your buying power, and it results in us being able to include with the offer an actual pre-approval letter specific to the property and the offer price. Ninja Bonus: It shows the seller you’ve done your homework, and that shows strength AND respect!
2) Introduce yourself!
I mean, write a letter of introduction so the seller feels that they’re working with real people. Add praise about the home, why it’d be perfect for you and how you can envision living there. Ninja Bonus: Include a casual photo of you (and family, if applicable).
3) Lighten up on over-lapping contingencies!
Home Inspection, Lead Based Paint, Neighborhood Review, Feasibility Study… when these optional contingencies start stacking up, it scares the %*#$ out of the seller. The contingency periods run simultaneously, so ABSOLUTELY get enough time to research any concerns, but leave the extra addenda out of the offer to keep it lean and mean. Ninja Bonus: It’s always a safe bet to just assume a pre-1978 house has some lead paint. The key is to avoid ingesting it! (Besides, it doesn’t taste so good.)
4) Shorten the Inspection Contingency!
The boilerplate 10 days was necessary back in ’04 and ’05 because inspectors were busy as all get-out. But today, a quick call ahead to any given inspector and chances are they can be out there within 48 hours, lessening the time the seller spends biting their nails. Ninja Bonus: Shorten it to 5 days or less, and weekends won’t be counted!
5) Cover your own closing costs!
At the end of the day, a seller wants to know the net proceeds after all expenses are paid. Offers that ask the seller to pay buyer closing costs (i.e. “a $5000 contribution”) actually cost the seller more than if you just offered $5K less on the price, because the seller pays excise tax, Realtor fees, & escrow & title fees based on the gross sale amount. Ninja Bonus: Don’t be afraid to negotiate with your lender on some of their fees!
6) If you’re using an escalation clause, include a strong increment!
An escalation clause is used in multiple offer situations when you’re willing to pay “up to” a given price – the “ceiling”— and you’ll beat any competing offers by XXX dollars – the “increment.” Some people mistakenly think the ceiling is all that matters, i.e. “The highest number wins!” But if it only beats “Offer B” by a measly $100 increment, and Offer B has better terms elsewhere, i.e. a huge down payment and a quick 2-day inspection contingency, 9 out of 10 sellers are going to choose Offer B. Now, if that increment were $3000… that’s a new sea kayak to the seller. That MEANS something, and that would likely get you the house. Ninja Bonus: Sometimes a seller will counter-offer at your full ceiling price. Be very sure you’re really willing (and able) to go that high before signing off!
