A full price offer used to be a great offer. That was before limited housing inventory caused competition to explode. Buyers are making unprecedented offers in order to win out over their competition. I even heard of a home going for $100,000 over list price. That is, in my opinion, too extreme, but we are seeing offer terms like we’ve never seen them before.
All this competition is making seller’s pretty spoiled. Full price just isn’t good enough anymore! Sellers are getting very choosy in the offers they accept, especially if their home is in high demand. The more competition for a home, the more competitive the offers, and the higher buyers will go in their price. But price isn’t the only term that’s appealing. Check out these 5 things home sellers want in an offer.
- Over list price. Unless a house is ugly, outdated, or in a poor location, you can bet it will sell for over list price.
- All cash sale. A cash sale means a guaranteed amount. No need to worry about appraisals, lenders, or mortgages.
- Cash to pay difference. For a buyer with a mortgage, the home still has to appraise for the contract price. What if it doesn’t? Buyers are offering to pay the difference out-of-pocket between appraisal value and contract price.
- No inspections. Many buyers are waiving home inspections to make their offer stronger, and sellers know it. They don’t want to do repairs or have the hassle of negotiating repairs. This is risky for buyers, but they are doing it.
- Convenient closing. Sellers are often setting the date they want for closing, and sometimes requiring a rent-back, to make closing totally convenient for them.
At this point, buyers are bending over backward to appeal to sellers and beat out competition. Those who have cash are using it. And sellers are sitting in a pretty comfy spot.