If you really want a property and think there will be multiple offers, figure out the maximum amount you’re willing to pay. No surprise, but the highest and best offer almost always wins.
Your agent can explain different ways to make your offer stronger, but here are a few common strategies:
- Offer a faster closing date. This shows the seller that your priority is to get them their money. This is particularly appealing to sellers who are already in contract to buy another home. Be sure to verify that your lender can accommodate an abbreviated closing schedule.
- Shorten your inspection contingency or waive inspections. If the seller’s provided an inspection report or comprehensive disclosures that give you confidence, you could consider waiving shortening or waiving your inspection contingency. However, this shouldn’t be done lightly as it’s your best chance to back out of the home if it turns out to be a lemon.
- All cash or no loan contingency. All cash offers are very enticing to sellers because there is no chance of encountering complications with a lender which could cause the deal to fall through.
- Waive your appraisal contingency. In a hot market, your agent might recommend waiving the appraisal contingency. This means that if your appraisal didn’t match the sales price, you’d need to come up with the difference between the contract price and the appraisal value, or be in breach of the purchase agreement.