Offer Strategies In A Competitive Market

As we’ve talked about here at the market has shifted in the last year to once again become quite competitive for buyers, particularly at certain price points. While offering a strong price for the home you’re interested in is of course the primary method of securing a home, there are other non-traditional methods which have been proven quite effective. Team Woodall does utilize these various methods when the situation dictates to put our buyers in the best possible position to secure their next home. Here’s our list of ideas to consider before your next offer:

  • Price! – As was just mentioned price is THE primary factor a seller will look at considering offers. While this isn’t a non-traditional method, it’s important enough to put it first on the list. Especially since some buyer’s are still having a difficult time coming to realize the market isn’t always in their favor anymore. Low ball offers are mostly a thing of the past as even foreclosure properties are priced much more closely to a true market value. This doesn’t mean you have to pay above average market price. Although that remains an option if you’re planning to hold a property for a long time and factor in the “enjoyment value” a particular property might bring. For instance a home with phenomenal views, in your desired community, etc. may have some additional monetary value to you that makes a top-end of the market range worthwhile.
  • Terms – Our primary counsel to most of our buyers is to keep an offer straightforward and as “clean” as possible. A simple offer is much easier for a seller to understand and they’re more likely to agree to a simple offer than one which has a bunch of stipulations and non-standard terms. This doesn’t mean you can’t still get concessions and other necessary items but don’t bog down an offer with small details. This continues on during the inspection period, a minefield today in transactions, where sometimes taking care of small fixes is a better idea than asking for each item on an inspection report to be completed by the seller. Closing timeframe is another area that can strengthen the terms of an offer. At times this is making a close of escrow happen quickly, but at others it’s being flexible to meet the needs of a seller.
  • Write A Letter – You’ll see this suggestion crop up from time to time and there’s a reason for that….it can work! Now, not every seller is motivated by the personal factors a letter written by a buyer communicates (think of bank-owned properties), but owners who’ve raised a family in a home or have lived in the residence for a long time are much more likely to be swayed by such a letter when other terms are at least close in competing offers. A best practice here is to explain why you want that particular home and what makes it stand out for you.
  • Delivery – At times making a presentation in person can be of benefit but more than anything Team Woodall tries to establish a good rapport with the listing agent on each offer before presenting it. Having the listing agent positive about an offer is an important step in them helping to best communicate an offer in a positive light. Team Woodall strengthens our relationships constantly with other agents in ways which you don’t see that includes providing feedback when requested on each property shown, networking at industry events, and providing punctual communication. Another part of the delivery is to provide some reasoning or justification with an offer. This isn’t an opportunity to “beat up” a seller on price, but rather show a clearly thought out rationale.

These strategies are just a part of the discussion Team Woodall has with our buyer clients to best position you to have your offer accepted.

Stephen Woodall
REALTOR, GRI @ Long Realty Company
Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.

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