Date Archives: August 30th, 2021

The time has finally arrived when you're ready to purchase a home. You found the perfect property, your finances are in order, and you're ready to make an offer. There's only one problem, so is every other buyer that's looking for their dream home. In a seller's market, our REALTORS® can help you move to the front of the line.

In a seller's market, buyers outnumber available homes for sale. Buyers often face bidding wars and full-price offers for Nassau County homes for sale and Suffolk County homes for sale that don't sit on the market very long. You need to make your offer stand out so sellers will take notice!

• Make a Clean Offer
  A clean offer means that it shouldn't be contingent on the sale of another property, have financial constraints, or ask for seller concessions like discounts or paid closing costs. In a competitive market, sellers don't need to make contingency sales or offer discounts. They want well-qualified buyers with pre-approved loans and few risks that may jeopardize the sale.
  
  
• Offer Above-Asking Price
  When buyers outnumber available homes, it's not the time to make low offers. If you want the house, you may have to go above the asking price. Even an offer of $3,000 - $5,000 more will show the seller that you're a serious buyer. A reasonable offer above the asking price won't change your mortgage payment much, but it may get you into your dream home.
  
  
• Put Down More Earnest Money
  When buying a home, earnest money deposits (EMDs) prove that you're a good-faith buyer. On average, EMDs are 1-3% of the purchase price, but you can make a larger deposit. Your agent will hold on to your deposit, which will go toward your down payment and closing costs. However, if you sign the contract and don't buy the home, the seller can keep your deposit.
  
  
• Make a Larger Down Payment
  Making a larger down payment than required by your lender will send a message of good faith to the seller. By putting more money down, you're showing the seller that you're a serious buyer who is capable of meeting all financial obligations. A larger down payment assures the seller that the loan is not at risk and the sale won't fall through.
  
  
• Pay with Cash
  Cash offers are very appealing to eager sellers because they aren't subject to loan approvals, financing contingencies, and lending procedures by banks. Lenders require property inspections and appraisal contingencies prior to loan approvals to protect their interests. Cash offers keep the sale between the buyer and the seller, so the deal moves quickly without a long process.
  
  
• Get a Pre-Approved Mortgage
  In a tight seller's market, multiple offers are often entered on the same home within just a few hours. This can lead to a bidding war where the seller will have to choose the most qualified buyer. A pre-approval letter from a lender that states the amount of money you can borrow for a mortgage will significantly increase your chances of moving to the front of the line.
  
  
• Add an Escalation Clause
  An escalation clause means that your offer will outbid other offers up to a maximum price. Keep in mind, even with an escalation clause the seller can still make a counteroffer. Instead of accepting your escalation clause, the seller can raise the listing price. At that point, you can decide the best way to close the deal.

If you're thinking about buying or selling on Long Island, contact us for information and prices on available properties that meet your needs.