Chic vs. Geek: Making a Winning Offer

Homebuyers in today’s market are facing steep competition. Low interest rates, pandemic-prompted home shopping, and extra lean inventories are colliding to fuel high demand. And according to the California Association of Realtors, one of the fiercest markets is the Bay Area. So what does it take to make a winning offer?

CHIC (PEARL)

Lately, we’ve seen a lot of buyers' fatigue and clients who wanted to give up. We’ve also been in multiple bid situations that went more than 40% above the listing price. Here’s how to stay competitive:

Position your financing like a cash offer – Offers with non-contingent financing are proving just as strong as all-cash, and down payments over 30% are very competitive.

Bring your best offer, not your best price – Stand out with a flexible or quick closing date, depending on the seller's preference.

Find a good communicator – Your agent's relationship with the listing agent could make all the difference in negotiating a mutually beneficial offer.

GEEK (KEVIN)

That’s all good, but what is it’s still not enough to get the job done?

Consider waving and/or minimizing contingencies – This can be a gamble, but it's growing more prevalent. That’s why it’s important to have an agent to guide you.

Put more skin in the game – Pay the initial 3% deposit within one day of your offer being accepted, buy a one-year home warranty, and more.

Know when to walk away – In the end, you may get out-bid, no matter how strong your offer or how well positioed. Sometimes the smartest move is moving on.

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