Here I will give some tips for a competitive home offer that has successfully worked for my clients. I will first list the methods I use, then breakdown how to use them and why they are attractive to sellers!
1) Escalation Clause
2) Clean Offer
Right now homes are getting over the asking price, and we aren’t always talking a couple thousand. I personally have seen multiple houses go for $10k-$300k over the asking price! One great tool that can help you save money while offering your top price is an escalation clause. This clause allows Buyers to offer an initial price but states they will go up to a certain price through price increments. This allows the Buyer(s) to increase their offer over the next highest, if above their initial offer, without going immediately to their max. Of course, this is the idea behind this clause but situations vary. But BE AWARE! the language in this clause is critical and an inexperienced agent could land you in hot water if it is not written properly.
The second point to consider is making a “clean offer”. Right now it is typical to see offers come in with no inspections. Every situation and property is different but there is a risk to this. If you feel comfortable with the home and have the funds to cover any unexpected small issue then foregoing inspections can be very attractive to the seller(s). One option I use with my clients if they don’t feel comfortable waving an inspection is to have a clause that states only repairs over a certain price point will be addressed, typically $5k or more. Simply put it means that the Buyer(s) aren’t going to ask the seller to repair and small issues. However, if there is a large, unexpected expense of over $5k, negotiations would take place. If the Seller(s) are confident with the maintenance they have done on their home they should view this as an ace in the hole.
Buyer(s) think Sellers don’t care about who they are, this isn’t always true! writing a personalized letter can never hurt. Who you are, and why you want to live there can mean a lot to someone who wants to see the home go to someone who will love it as much as they did.
These are just a few tips that I like to use when helping my Buyers make a competitive home offer! For more information about Buying and selling homes in New Hampshire, contact us.