A Gen-Z's Guide to Life and Real Estate

In a few of my recent real estate related blogs, I have brought up the idea of talking with your buyer agent about making your offer more attractive or competitive. What does that even mean?? Well, it varies due to a lot of factors such as: How many other offers are there? Has the seller asked for anything specific to be included in the offer? Do you have flexibility to offer the seller(s) something that other buyers might not be able to? Do you have the flexibility to re-work your financing for the home? etc… The point is, how can you make your offer the shiniest stone in the pile?

Some of the most common things to talk about when dealing with a competitive situation are the following:

1. Submitting an offer above the list price: Yes, real estate prices have been climbing at an astonishing rate over the past few years, guess what, it isn’t showing signs of stopping with the current lack of inventory. If you are going head to head with numerous other offers, the price will continue to be pushed higher and higher.
2. More Earnest Money/Bigger Deposit: Kinda speaks for itself.
3. Closing Date: Do you know the exact date the seller wants to close? It might be worth talking to your landlord to see if you can sublet or cancel your lease if you are worried about being stuck with two payments for a while. Maybe the seller would like a rent-back agreement?
4. Financing: Are you able to pay cash? Are cash programs offered by lenders in your area?
5. Offering an Inspection or Appraisal allowance: These deserve their own post… Are you willing to put a little more capital into the deal other than the purchase price?
6. Timelines: For the inspection, appraisal, and financing commitment – are you able to shorten those timelines so there is less time for the seller to worry about them?
7. Paying taxes and/or HOA fees for the year: To stand out in a way that isn’t used as much, you might offer to cover the property taxes for the entire year so the seller can walk away with a little more cash
8. Get creative with the Additional Provisions and Contingencies: There is an endless number of things you can offer the seller in the additional provisions.

These items are some of the more common things found in competitive situations, but you might be able to devise a better solution. At the end of the day, it all comes down to what you are comfortable with or what the situation calls for.

In competitive markets, it is always a great idea to find a good buyer agent who has some tricks up their sleeves to help you when you are in a competitive situation. If you need help navigating the Dane County real estate market, feel free to reach out!

*This is not real estate advice. For real estate advice, please consult with your real estate agent, Realtor®, or attorney for advice that is relevant to your situation and needs.*