In an always-hot housing market like New York City’s, being outbid for just about any property is a common woe. Luckily, there are a few steps homebuyers can take to help strengthen their offers and beat out the competition:
1. Make the First Move
Making the first serious bid has clear advantages, and it increases the chance that a seller will favor yours over similar offers made afterward. Being the first bidder also increases the chance that a seller will give you the opportunity to match or exceed higher offers if they receive them after yours.
2. Show You are Ready, Willing, and Able
Communication is vital during the bidding process, and an experienced agent at Byson can help present your offer so it stands out from others. Our real estate agents ensure your terms are communicated clearly and on time, help convey that you are financially qualified, and share insights into how you can be more competitive. It helps when your realtor has experience working in local markets and is actively working with buyers and sellers alike.
To show you are financially qualified, we encourage buyers to share either proof of funds (i.e., a recent bank statement or credit score) or an up-to-date pre-approval from your lender. This assures the seller you've already taken the necessary steps to ensure you can purchase at the asking price. If the pre-approval on hand is outdated, or the offer price is above the pre-approved amount, take the initiative to ask your lender for an updated letter. If you haven't started this process yet, ask your agent to connect you with a recommended lender.
You can also express your motivation by submitting a “buyer love letter.” Sharing information such as how long you've lived in the city and what made you fall in love with the property can go a long way with a seller. This can influence a decision between two potential buyers offering a close bid, especially if the sellers have occupied the property for a long time and are emotionally invested in it.
3. Ask Questions
Make a list of questions to ask the sellers, either directly or through your agent. Most importantly, always ask why the seller is parting with the property! Maybe the seller is purchasing another home or experiencing financial distress. Regardless of the reasoning, these insights help you better understand the seller's interests and motivation.
For example, a seller who is purchasing another property in 45 days and financing the purchase themselves will value a quick and easy close. On the other hand, a seller still searching for their new home could be looking to lengthen the process and close 3 months in the future. The more information you have, the better equipped you are to beat out other bids.
4. Cut Out Contingencies
Think of contingencies as strings attached to your offer—the fewer there are, the easier the seller’s process and, therefore, the more enticing your bid.
For example, an inspection contingency gives a buyer the right to perform a home inspection within a predetermined amount of time after an offer is accepted. If the unit is perceivably in mint condition, you can waive this contingency or request an inspection for informational purposes only, which means you will not request any compensation should anything material be found.
If you have the financial capacity, you could also make an all-cash offer. A cash offer constitutes that there will be no financial contingencies and is much more appealing to a seller in comparison to other offers in a bidding war.
Ready to get started? Schedule a call to be matched with a Byson agent that can help you every step of the way in securing your dream home.