For the past couple years, it’s been a seller’s market in South Carolina. It is not uncommon for there to be two, three or more offers on the same house. This gives a seller a great advantage because—well, the more options the better, right? That’s all well and good if you are the seller, but what if you’re one of the prospective buyers?
How can you make sure that your offer will be the most attractive when you’re stuck in a bid war with several other buyers? By keeping the 10 tips mentioned in this post in mind, you will be well-informed and able to submit an offer that gets a seller’s attention and gives you the edge over other offers on the table.
Estimate the seller’s net gain at closing
As a home buyer, you undoubtedly want to get the best deal you can when you close on a new home. If your goal is to gain the lead in a list of bids, however, it pays to try to see things from the seller’s perspective. There are home valuation tools available and other resources to help you estimate what type of offer is both good for you and gives the seller an attractive net amount at closing.
Purchasing “as is” might give you an advantage
If you’re making an offer on a pre-owned home, there are likely to be a few minor repairs in need. In fact, there might even be some big ones, like a carpet that needs replacing or some plumbing issues. If you are certain that you really want the house and there are additional offers on the table, your offer might be more attractive if you agree to purchase the house “as is,” meaning you’ll make the repairs yourself at a later date.
Bump your offer to the top of the list
Keep these additional tips in mind when there’s a competitive bid war going on for the house of your dreams and ask your agent to help you create an offer that will get attention:
- Don’t be afraid to get creative by making an offer JUST over the list price might be enough to win you the bid!
- Include an escalation clause stating that if another offer matches yours, you’ll increase up to a certain amount.
- Offer a substantial amount of earnest money.
- Make your offer contingent-free.
- Make sure your bid is competitive, meaning, do not underbid.
- Offer to pay your closing costs.
- Considering offering to pay a portion (or all) of the seller’s costs as well.
- Agree to go to closing as soon as possible.
You might review this list and the other tips mentioned in this blog post and determine that you’re willing to do some of them but not others, and that’s fine. The idea is to execute the best offer you’re able to handle that gains a seller’s attention over the other offers that are coming in. You must determine how badly you want the house and what you’re willing to do to get it and go from there.