Having to compete in a multiple-offer situation on every offer has forced agents to come up with every possible way to make their buyers’ offer the most attractive to the seller. Of course, all of these options are predicated upon the comfort level of the client. One or all of these options could be appropriate, depending upon the situation.
1. Employ an escalation clause
Start by running comps. The offer will likely need to be over the list price. That being the case, how much over the list price do the comps support? Additionally, how much do you believe you will need to offer given the condition and location of the home? Once you determine a “cap” for the offer, suggest an escalation clause up to the cap amount.
2. Cover the appraisal gap
Appraisal gap coverage is another seller-pleaser. It means stating in the offer that the buyer will cover any shortage between the offer price and the appraised value. It’s always a good idea to cap this amount as well. Any shortage amount will increase the down payment for your buyer. You will want consult your clients on the amount they’re willing and able to afford.
3. Make inspections easier
The inspection is another area to set the seller at ease. Here are a few ways to make your offer more attractive:
Offer to take the property “as is.” Make sure you don’t forfeit the right to an inspection, and always include the option to terminate. The idea is to communicate that your buyer is comfortable with the condition of the home and won’t ask for any repairs. However, if you complete the inspection and there are too may red flags, you retain the right to terminate without penalty.
Offer to limit your inspection repair requests to health- and safety-related items only.
Offer to limit your inspection repair requests to those items exceeding a predetermined amount. For example, $500 or $1,000 depending upon the situation and your clients comfort level.