The real estate market is competitive, especially in larger markets like Dallas, Austin, San Antonio, and Houston. Submitting a great offer is a must, but how do you make sure you’re submitting an offer that will beat the competition?
1. The first step is to set your buying parameters.
Decide what you can afford, the maximum offer you’re willing to make on any house, and then stick to it. It’s easy to get caught up in the excitement of winning a bidding war, so know your limits before submitting offers. Setting parameters beforehand will let you know when it’s time to walk away from a property.
2. Before you begin submitting offers, you’ll want to get pre-approved for your loan.
This lets buyers know that your financing is secured, and you’re serious about purchasing. An offer without secured financing might fall through, so having loan approval will put your offer above those who don’t.
3. Opt for a quick inspection.
Door works with several licensed inspectors who can generally inspect your property within 3-5 days of your offer. The sooner you can schedule the inspection, the sooner you’ll be aware of any contingencies you want to request during negotiations. Alternatively, you can schedule a pre-inspection before submitting your offer. This can be a financial risk since you’re paying for the inspection prior to your offer being accepted, but the payoff is that you’ll be able to submit an offer that includes any contingencies and repairs you require. In faster markets, it’s a gamble that usually pays off since it presents the seller with a complete and ready to finalize offer.
4. Put an escalation clause in your offer.
This lets the seller know that you’re willing to increase your offer to compete with other offers they receive. Generally, sellers have to show proof of other offers before enacting the clause, so it’s a relatively low-risk way to make sure your offer stays on top.
5. Work closing around the seller’s schedule when possible.
If the sellers need to move the house quickly, an offer that provides a quicker close will be more appealing than an offer that needs lengthier negotiations. The same goes for sellers who may need to remain in the home for an additional month or two via a leaseback option. Include your flexibility for closing dates in your contract, as well as your willingness to lease the home to the current owners until they are able to relocate.
While submitting an offer can seem like a risky proposition in a fast paced market, Door offers you half of the buyers commission at close.