In this red-hot market of ours, it can be difficult to find and close on the house you want. Here are a few things you can do to your purchase agreement to strengthen your offer and come out on top in a multiple-offer situation:
1. Add an escalation clause. With this addition, you offer the seller x amount of dollars over the next highest offer. For example, if the home in question is listed for $400,000 and you knew there would be 20+ offers for it, you might offer the seller $420,000 and add an escalation clause stating that you’re willing to pay $5,000 over the next highest offer up to $450,000. Be sure to add a ceiling to what you’re willing to pay. Some sellers like this clause, while others prefer that you put your best foot forward.
2. Waive the inspection contingency. Let’s say the seller has a dozen offers to review and three of them waive the inspection contingency. If any one of those three offers is anywhere near the highest price, that’s the buyer the seller will choose to work with. This term is gold, and it will move your offer to the top of the pile. It does come with some inherent risk, though, so beware before trying this tip.
3. Allow the seller to pick the closing date. Even better, let the seller have a few days (or weeks) to move after closing. You want your offer to make the selling process easier for the seller.
4. Negotiate a rent-back agreement. Some sellers want to rent their homes back from their buyers for a month or two after closing. This is a great incentive for sellers who want to cash out now but not move right away.
As always, each situation is different, so contact a licensed real estate agent to help you go over your options and decide which terms work for you. If you’d like to know how the John Schuster Group can help you secure your next home, visit our website or give us a call. We’d love to connect with you!
