With the Wichita housing market continuing to show low inventory we are seeing more and more situations where we find the perfect house for our clients and then find out…. there are 3 other offers competing to win. Not a good scenario if you love that house, but there are strategies that we have used to put our clients in a great position. We’ll give you three here today:
- Increase your earnest money.
When I’m explaining earnest money to a first time buyer I tell them it’s “I’m serious” money. Simply put, it’s your downpayment money that the title company hangs onto until you close. If you back out of the deal, the seller keeps it. This really puts the sellers mind at ease knowing that if you’re earnest money amount is high, you’ll work much harder to close on time and keep your end of the deal. Think about it from the sellers perspective, if Buyer A only loses $500 if they change their mind on the house and Buyer B has $5,000 on the line – which one would you pick? Of course. You would pick the offer that was more committed to closing. The great part about this strategy is that it doesn’t COST you any extra money! It’s part of your downpayment so it’s going to the house one way or the other, so if you’re in a multiple offer situation – get this number as high as you can.
2. Faster closing date.
New mortgage rules implemented in fall 2015 have certainly slowed down the closing process, but with the right lender and real estate agent working together you can still get a deal with a mortgage closed at the 30 day mark when the average is closer to 45-60 days. By speeding up closing you show the seller that you are serious about the house and you’re not going to be dragging your feet or continue looking at other houses. They want to move too, and by promising a quick closing your offer will stand out from the rest.
3. Write a letter to the sellers
Nothing grabs the attention of sellers like knowing that the house is going to someone who is going to love and appreciate their home. A heartfelt letter expressing how hard you’ve looked, how much it would mean to you to have your offer selected, and how perfect their house is goes a long way with many homes sellers.
Obviously, the best idea to stay out of these situations is to act quickly and write a strong offer to begin with, but if you do find yourself in the mix for a popular house make sure to try these three suggestions so that you can live in your dream home!