The last few years have been very rough for home buyers. Buying a home in Utah has been a constant struggle as home prices are soaring and wealthy buyers are moving in from states that have imposed strict lockdown policies. Of course this is nothing new and is very frustrating for Utah residents. It may be tough, but not impossible. Here are some of the best ways to dominate a seller’s market as a buyer.
Make A Clean Offer
Making a clean offer takes the form of removing contingencies. This makes your bid more competitive and attractive to sellers. Make your offer free of seller concessions. The only negotiation should be around price. Understand how competitive the home you’re looking to bid on is. The more competition, the more you’ll have to give to the sellers.
Be Prepared to Offer Above Asking
This definitely seems to be a no-brainer. Money talks, all the other intricacies generally fly out the window with a large offer. There’s no better way to appease a buyer than to see more value in their home than they do. This is always tough to gauge, how far over asking do you go to outbid your competition but not so high that you significantly outbid your competition. Working with an experienced real estate agent is a great way to be a competitive buyer.
Put Down More Earnest Money
The size of your earnest money deposit is a great indication of your interest in the home. Generally an earnest money deposit is around 1-3% of the purchase price. If you can put more down than that the better off you’ll be. Make sure you’re comfortable losing the earnest money you put down and make sure you’re committed to buying the home.
Add An Escalation Clause
On top of an earnest money deposit, an escalation clause is another way to make you more attractive as a buyer. An escalation clause means your offer will outbid other offers to a certain extent or a maximum price. If you elect to add an escalation clause to your offer consult a lawyer to have them write an escalation clause out.
The Best Way to Dominate A Seller’s Market is to Stand Out!
These 4 tips are great ways to help you be a more competitive buyer in a seller’s market. When in doubt, pay in cash if at all possible. Nothing is more competitive than a nice cash offer that doesn’t have to compete with loan approvals and qualifications. Get out there, be patient and you’ll find a home to your liking!
