4 Ways to Ensure Your Offer is Accepted When Buying a House in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas

4 Ways to Ensure Your Offer is Accepted When Buying a House in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas

The economy certainly isn’t in its best shape ever, but that hasn’t dampened the housing market. Inventory remains extremely low, and buyers are numerous, especially with the current low interest rates. Sellers are in the driver’s seat and can be picky with offers. It is not uncommon for sellers to get multiple offers. So let’s take a look at 4 ways to ensure your offer is accepted when buying a house in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas.

1. Make a Clean Offer (as Much as Possible)

A good way to make sure your offer is accepted is by making it as clean an offer as possible. This means making an offer with limited or no contingencies. This would include a sale contingency (you need to sell your current home to buy) or other financial constraints. You can also limit inspections to serious matters. This states that you will not make requests for minor repairs. An offer like this is more attractive to sellers because there is far less chance that the buyer will back out of the contract, which means the offer is more likely to be accepted.

The purpose of contingencies is to protect you, the buyer. But even without contingencies, there are other rules that protect buyers. For example, oil tank and knob and tube electrical remediation are the seller’s responsibility.

Still, making an offer with no or very few contingencies can be risky. So before making such an offer, it’s always a good idea to consult your Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas agent. To learn more you can call us at 917-608-7277.

2. Offer Appraisal Gap Coverage

Another way to ensure your offer is accepted when buying a house in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas is to offer appraisal gap coverage or “waive the appraisal”. 

In the current market, you may have to make an offer over the asking price. When you do, there’s a chance that your offer may be more than the appraised value of the home. The appraisal gap coverage says the buyer will make up the difference.

Say a home is listed for $500K, and you go under contract on this home for $520K, but the appraisal only comes in at $510K. In this scenario, you would have to either pay an additional $10K in cash to make the deal happen, convince the seller to accept a new purchase price of $510k, or walk away from the deal. Sellers are afraid of the latter option, so they like to seek a guarantee that when you make an offer over the asking price you are willing to come up with some money to cover the difference if the appraisal were to come in short.”

Appraisal gap coverage assures the seller that you’re willing and able to pay the amount over the home’s appraised value. So, if a seller gets two equal offers, and you provide appraisal gap coverage with yours, it is more likely to be the one accepted.

3. Put Up Larger Downpayment

You can also put up a larger down payment (earnest money deposit) than other buyers to ensure your offer is accepted when buying a house in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas. This will show the seller that you have more skin in the game, which will make your offer more attractive.

“The amount of money you put down as downpayment will vary but the absolute minimum is 5%. As the down payment increases, so does the possibility that your offer will be accepted. It shows sellers you have the greater financial flexibility and you have to borrow less money. As an added bonus if the home doesn’t appraise you have more cash on hand to make up the difference.

4. Limit Concessions

Including a limit on concessions is another tactic you can use to ensure your offer is accepted when buying a house in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas. Here’s how it works:

When preparing your contract we will add a clause like “Buyers agree to waive the first $1,000 in concessions, should they arise” In plain English, the buyer can find up to $1,000 dollars in repairs and they will not ask for a concession. This is not all bad for buyers. If a buyer just offers $1,000 more they are definitely spending that money. In this situation, they have the potential to “save” that money if no repairs are necessary.

And Work With a Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas Agent to Ensure Your Offer is Accepted

In the current housing market, with low inventory and many buyers, you need to do everything you can to make sure your offer is accepted. And one smart move is to work with an experienced local agent like us who knows exactly what it takes to get an offer accepted in the local market. So if you really want to ensure your offer is accepted when buying a house in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas, contact us today at 917-608-7277.

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