top of page
Glancer Magazine
GlancerChicagoWest_graphic_black.jpg

REAL ESTATE LOCAL | How to Win a Competitive Buyers Market by Penny O'Brien




As You Embark Upon Your House Hunting Endeavors.....

THE MULTIPLE OFFER GAME! THE MULTIPLE OFFER GAME! If you're a buyer, you've probably grown weary of this chant. But fear not! Position yourself as the ultimate contender by offering the most favorable terms and price.


EMBRACE "AS IS" - Don't flinch at this phrase. It still grants you the opportunity to inspect, but refrain from seeking repairs. In our market, even in an "AS IS" scenario, buyers may still request a radon mitigation system if levels are high. Avoid nitpicking for repairs like GFCI outlets and clogged drains. If everyone else is going "AS IS" and you aren't, you're out!


APPRAISAL WAIVER - It's standard practice here to include an appraisal gap waiver, ensuring the seller the offered price exceeds the list price. If you're offering $50K above but won't add a waiver, and everyone else does, you're out! The home only needs to appraise for the list price, and you cover the difference at closing. Some buyers even offer a full waiver, committing to the contract price regardless of appraisal value.


ESCALATION CLAUSE - These are a boon, eliminating the guesswork of winning bid amounts. While sellers' agents might not favor them in multiple offer scenarios, as a buyer, go for it! Set an amount to exceed any offer and cap it.


CASH IS KING - Cash buyers hold sway if they come in strong. Interestingly, they might lowball assuming their cash is king. But at what point would a seller choose a well-vetted mortgage buyer? I'd wager around the $10,000 mark—a sweet deal for the seller's pocket!


CHOOSE YOUR FINANCING WISELY - Opting for 90% financing when others offer 80% might weaken your position. Consider rearranging funds. Your choice of lender matters too. A reputable name will impress both the listing agent and seller.


YOUR AGENT IS KEY - You need a seasoned, reputable agent in your corner. They'll navigate these terms expertly and negotiate on your behalf.


Wishing you success in your house hunting endeavors!


Comments


Trending Now Locally

Featured Partners

Shop, Dine and Support Local