Gone are the days when multiple properties popped up for sale on a weekly, if not daily, basis. Buyers had time to peruse listings, do a leisurely drive-by or two, and work their way toward an offer. But today’s housing market moves much too fast for that laidback approach. Now, properties often move from listing to a closed deal with breakneck speed—in days rather than weeks or months. As a result, only the most serious buyers have a chance in today’s hyped-up seller’s-driven market.  

If you’re lucky enough to have scoped out, checked out, and reached a decision on a property, it’s time to put your best foot forward with a stellar offer. There’s never been a more crucial time than now to have a fine-tuned strategy for making offers that will result in closed deals. But where to begin?  

Preapproval is a MUST 

To even be a player in today’s real estate market, “preapproval” or “verified approval” is a prerequisite. While sellers have always preferred already-approved buyers, the fast pace of today’s housing market requires buyers to have their financing ready to go even to get a foot in the door. So be sure to have documentation to prove that preapproval status.  

Factors that influence an offer price include: 

• The condition, size, and location of the property. 
• How long the property has been on the market. 
• What other properties in the neighborhood/area are going for. 
• How many properties are currently available. 
• How much you can realistically afford to pay.    

Doing your homework can pay off significantly.  Using current market data, rather than “just winging-it” will position a buyer to make the best offer possible.  

Contingencies that help rather than hinder 

For sellers, the fewer the contingencies the better, as those can open doors that can bring the sale to an abrupt halt. For buyers, on the other hand, contingencies act as protection against being stuck with an issues-ridden-house, a lower-than-expected appraisal value, a title dispute, or a mortgage-gone-awry situation that leaves a buyer without financing. 

There’s no doubt that when the buyer waives contingencies, their offer is more appealing to the seller. But buyers must weigh the risks involved and make thoughtful, informed decisions.    

In 2021, bidding wars raged as the competition among home buyers soared. In fact, last year, more than 30% of U.S. homes sold for more than the asking price—a stat that increased to 43% in February.  

The most effective bidding strategy comes as no surprise. Buyers who offered all cash were 334% more likely to succeed in their quest. Other, lesser effective, yet still helpful tactics included waiving the financing contingency with a 31% bump in success and a 25% increase when the buyer conducted a pre-inspection. Some once-effective strategies have become too commonplace to make an impact these days, such as waving the inspection contingency and forgoing an escalation clause.   

It’s a tough market, but buyers who take the time to strategize their offers will dramatically up the odds of closing the deal.  

 About Rentals America   

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.