let’s talk: COMPETITIVE OFFERS IN A COMPETITIVE MARKET PT II
Update from last week – we are officially under contract on a home! Let’s talk about what it took and what the next steps are.
So, as we do, let’s talk Real Estate, let’s talk COMPETITIVE OFFERS IN A COMPETITIVE MARKET PT II…
Let me give you a breakdown of this deal.
House came on the market: 9/1
Offer submitted: 9/3
$25k OVER ASK
NO escalation clause this time
20% down, conventional loan
10 day inspection contingency
Appraisal contingency for up to $10k under the agreed upon purchase price
Willing to close as soon as the bank was ready
And again, we included a personal note from my husband and I about our plans for this home!
Offer accepted: 9/4
This was a multiple offer situation which means we had to do whatever it is we could to be unique.
Here is why I think our offer was chosen over the others.
(1) Initial Offer Was Our Best Offer
We put our best foot forward off the bat. We did not try to play any games and we simply gave them our best and final as our opening offer.
(2) Higher Earnest Money Deposit
We offered a 5% earnest money deposit upfront. The rule of thumb is generally a 3%-5% of the purchase price, so we went on the higher end to show we were serious and willing to put money on the line.
(3) BFI (Buyer’s Financial Information)
In PA we have to submit the Buyer’s Financial Information to help support the fact that they can financially close on the deal. PK and I are hyper organized when it comes to our finances so we provided a SUPER IN DEPTH overview of our finances and a detailed plan outlining how we plan to pay for the home. Showing the seller that you are organized and you have a clean and clear strategy to close on the property can be super comforting for them.
(4) We Got Personal
We wrote a note to the seller about our plans for this home and how we were excited and eager to make a home of our own.
A seller who has been in their home for years may really value who calls their house a home next.
Next step in this process…Inspection! Fingers crossed.
The purpose of the past two LTRE posts is to share real life experience of what is working in this competitive market vs what is not. If you are buying or selling in this market, let us know what is working for you!