We are in a seller’s market. Many buyers are discovering that there is fierce competition for homes that are for sale. Buyer demand is outstripping supply, and most homes that are listed receive multiple offers. This is driving prices higher and limiting the number of contingencies that buyers can include. In some cases, buyers are waiving their right to a home inspection. While this tactic may get you a winning offer, it can also mean unforeseen major expenses once you close. So how can you make an offer that gets accepted without waiving your right to have the home inspected before closing? Here’s what you need to know.
Get preapproved for a mortgage
We cannot overstate the importance of getting preapproved for a mortgage, especially in today’s market. Sellers have many offers to choose from, and they are going to go with the most serious buyer. You will not appear serious about your offer unless you’ve gotten preapproved for a mortgage. This lets the seller know that you’re more likely to make it to the closing table without any issues.
Save up for a big down payment
Another way to make your offer stand out is to have a large down payment ready. Having a stash of cash to pay upfront will make you more attractive to most sellers. They will feel more confident choosing your offer because your financing will be easier to close. You may have to spend more time saving up for your down payment, but the results can be worth it.
Use an escalation clause
Negotiating a deal between the buyer and seller can take a significant amount of time. For this reason, using an escalation clause in your offer can make it stand out. This way, the seller knows how much more you’re willing to up the ante to have your offer accepted. Your clause can include how much more you’re willing to spend over any other offer up to a certain amount.
Ask for an informational home inspection
One of the reasons that buyers are waiving their right to an inspection is because some deals may fall through based on what the inspection uncovers. Why would sellers want to take that risk, if they know that a buyer could potentially walk away? Instead of including an inspection contingency that states you can back out of the deal based on what the inspection finds, ask for an informational inspection. This means you can still get a home inspection during the closing process. But it will be for information purposes only — the seller will not be on the hook for repairs and will not need to renegotiate the deal based on the findings. This way, you as the buyer will know what you’re getting into and can be more prepared.
Because the market is so competitive right now, you may put in an excellent offer and still have it rejected. Don’t let that dissuade you from making your dreams of homeownership a reality. You may have to make several offers before yours is the one that wins the deal. Persistence is key in 2021.
Work with a pro
If you want to make a winning offer without having to give up a home inspection, then your best bet is to work with an expert. A professional real estate agent can give you the best advice to make your offer both appealing to the seller and less risky for you. Give us a call today!