6 Creative Tips to Get Your Offer Accepted

6 Creative Tips to Get Your Offer Accepted

  • Maureen Lathrop
  • 11/19/21

Summit County real estate is in a hot seller’s market. The year-round beauty of the area, its world-class ski resorts and the abundance of natural recreation make the area a desirable place to live. 

Home sale prices are up 24% over last year, and they are selling quickly. Last year homes were on the market an average of 63 days. This year the average is 7 days on the market — that’s a fast and competitive real estate market. Low mortgage rates and tight inventory supplies are fueling the current seller’s market. 

With homes selling so quickly, it is important to have your offer ready to go when you find the Breckenridge real estate you want. Here are six creative ways to make sure your offer is the one the seller accepts.


 


1.  Keep it clean

Adding contingencies to your offer for Summit County real estate slows the process and makes your offer less competitive. Keep your offer clean and do not make it contingent on the sale of your other property. 

Working with an experienced realtor can help you navigate the process so you will not need contingencies. Keeping your offer clean also means forgoing any seller’s concessions, such as asking the seller to cover closing costs. 

Also, avoid asking for any personal property or appliances. If your offer is similar to another and the other offer isn’t asking for anything personal items, then the other offer will be the one accepted. The more you ask for, the less competitive your bid is to the seller. 

2.  Use an escalation clause

An escalation clause is a statement in your offer that you, as the buyer, will raise your offer price to an amount above the highest bid submitted. This omits the need for you to resubmit a bid or amend your existing one and keeps your offer at the top of their list. 

You can, and should, provide a maximum escalation amount. For example, you will want to state the amount over the highest bid at $3,000 or $5,000, whatever you are comfortable with. You may also want to set a ceiling on how high you will go to ensure you are not paying over value. 

It is important to work with an experienced agent when using an escalation clause, as they will be able to monitor and control the listing agent from taking advantage of the process and unnecessarily driving the sales price of Breckenridge real estate up.

3.  Provide gap coverage

If you find yourself in a bidding war, you may need to offer an amount over list price to win the bid. When that happens, there is a chance the Summit County real estate will appraise below your sale price. 

Lenders and finance institutions will only loan an amount at or below the appraisal price. The seller doesn’t want to end up in a situation where the deal falls through at the last minute due to a lack of financing. 

If you guarantee that you can cover the gap between the appraisal amount and the sale price with cash, you will put the seller’s mind at ease. They may choose your bid over one that offers a higher selling price because they know your offer will come through the finish line with no financing issues. 

4.  Get your financing ready

Having your financing ready to go when you make your offer ensures the seller that you can complete the process. 

There is a difference between getting pre-approved and pre-qualified. Pre-approval means the lender has already submitted the loan to the underwriter and gained final approval. This can be difficult to accomplish without the final financing amount and appraisal. 

Getting pre-qualified by your lender means they have determined you to be financially stable enough to qualify for a loan under a certain amount. Your lender will provide proof of their approval status for you to share with the seller. 

Neither of these financing options, however, are better than straight cash. It will serve you well to talk with your lender about opportunities and types of loans to provide cash to you if you find yourself in a situation that calls for it. 

5.  A note about notes

In some cases, a note to the seller about who you are and your plans for their home will help to woo the seller. In other cases, it turns the seller off. Working with an experienced realtor will help you determine when and if you should use this tactic. Your agent can learn about the seller and what makes them tick. 

If the Breckenridge real estate is investment property, opposed to their primary home, for example, personal notes are less likely to make a difference to the seller. If the seller raised their children and lived in the home for many years, they will have a stronger emotional attachment to the property and will be more likely to be swayed by a buyer who also has an emotional attachment to the home.


6.  Use an experienced realtor

In a competitive market, an experienced realtor is your best weapon. You need every advantage when competing against multiple bids. A realtor experienced in seller’s markets will provide you with the best advantage. They will have insight on the seller and the seller’s agent to help you position your bid competitively. They will be able to prepare you for the process and save you from surprises and headaches later on. 

A realtor who is connected in the area will also know about Breckenridge real estate before it is listed to the public. You will have a big advantage if you can make your offer before anyone else and potentially be the only offer the seller sees. 

The realtors on Maureen Lathrop’s Team have experience helping homeowners and investors submit winning bids. They are happy to help you find the best real estate for your needs.

 

 

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