Making an Aggressive Offer

Are you tired of losing deals?

Despite Interest Rates have increased, our current Laredo Market is still bringing multiple offers on certain homes. If you have been actively looking and submitting offers it might be time to make some adjustments. 
Check out these helpful tips to help you win the next offer you submit! 

1) Reducing or completely eliminating the ask for Option Days can help your offer be more competitive. For those of us that dont know what Option Days are, they are the negotiated amount of days where a buyer can still back out of the contract. If you ask for more option days, the seller is at risk of you, as the buyer, backing out of the deal. By eliminating option days in your offer, you are telling the seller that you are completely serious about buying the home. You eliminate the risk the seller has with you not backing out and having to re-contract the home again.
*Keep in mind that the option days serve as your time to conduct inspections. 

2) Offering a Higher Price than listed price will definitely get the sellers heads turning. A higher offer price assures the seller that they are getting top-top dollar for their home. Be sure to review the offer price with your realtor because there are additional things to consider. This brings me to the next point.
 
3) Waiving the Appraisal. What does this mean exactly? When you submit an offer higher than the asking price, it is important to note the price per sqft that the home is at because that is what the lenders appraiser considers when valuing the home. Because every offer that has financing in place, the lending bank has to conduct an appraisal on the home to determine the value. An Appraisal Waiver lets the seller know that despite the appraised value, they will be getting the offer value that was submitted.
Ex: List Price: $220,000; Offer $230,000; Appraised Value $225,000. In this example the buyer will have to bring an extra $5,000 at the time of closing to make up for the difference in value. An appraisal waiver disregards the appraisal value.
There are also Partial Waivers that can be of benefit to the buyer as well. 
4) Lastly, Releasing the Earnest Money. Earnest Money can otherwise known as the Security Deposit. A not very known tip, that can add a cherry on top for the seller is releasing some, or all the funds to the seller. This tactic will usually occur at the beginning of the offer. The buyer can release 50% of the earnest as an incentive for the seller to choose their offer. 
​
Remember there are different scenarios that call for different approaches and strategies. Make sure to consult with a professional before introducing the aggressive moves. 

Be sure to connect with me with any questions or concerns you may have! For my Realtor friends, leave a comment below and share your tactic with us all!

Christian Chapa
956.763.4728
Milestone Real Estate Group

---