It has been a strange spring in 2015. The idea of Multiple Offers has resurfaced in the Central Ohio Region. Does this mean a Win/Lose scenario for Sellers (Winners) and Buyers (Losers)? Not necessarily.
There has been a lot of adjustment on the buying side this spring. People are having to regroup and understand the new fast paced selling market. Sellers are getting multiple offers in some cases within days after listing the property. What are buyers to do to win in this competitive market?
- Escalating Clauses: I’ll pay X plus $1,000 more than any other offer on the table up to Y price. This allows buyers to beat other buyers’ offers as long as the Y price is more than competing offers…
- No Remedy Clause: Do a home inspection; but, don’t request any fixes, unless there are major structural issues, from the seller. It gives the seller something less to worry about and you get to control the quality and chose who fixes the issues. Sellers are looking to leave. Who they choose to use to fix items inevitably will be the cheapest possible.
- No Home/Gas Line Warranty: This is money in the seller’s pocket, which will net the seller a little bit more.
- No Closing Costs: Asking for closing costs is asking the Seller to take a hit with their net profits.
- Cash Offer: Cash is King. It will trump most any offer on the table as long as it’s a fair offer.
- No Home to Sell: Anything new to the market is not the best thing for someone who has a home to sell. Those sellers are not going to take a second look at a buyer who has a home contingency. If you have a home contingency, your best bet is to look for homes that have been on the market for a while because they are slightly overpriced.
- Higher than Anticipated Earnest Money: Putting your money where your mouth is… If you absolutely have to have a home, then use Earnest Money to do your talking, with conditions that are favorable for the sellers. You need to be able to make your own criteria/conditions that you put in place to keep the Earnest Money and be willing to take a calculated risk.
Someone said to me once that negotiations are not about getting the most out of something but getting the person to hesitate and think. In this environment it is not getting the most off the list price, it is about beating out the rest of the competition by getting the seller to hesitate and consider your fabulous offer.