Getting out there and finding the ideal home for you might be a difficult task. When the supply of housing much outnumbers the demand, things get even more problematic. With these three approaches to buy your Philadelphia dream home even in a seller’s market, let’s do everything we can to place you in the greatest possible buying position.
Keep Things Simple
When putting an offer in on a home in a competitive seller’s market, the last thing you want to do is weigh that offer down with a variety of contingencies and demands.
You create a simple and earnest option for the sellers to peruse by keeping your offer devoid of these contingencies. When contrasted to a similar offer with additional contingencies, this nearly always has the impact of making your offer immediately more enticing. This could include not requesting personal property and home warranties, as well as foregoing inspections.
The main thing to know is that local or state legislation may demand a Philadelphia house inspection. In addition, your mortgage lender may request a house inspection as a condition of your loan acceptance.
We always recommend getting a home inspection to get a better understanding of the mechanics and condition of the Philadelphia property you’re buying. However, there’s a potential that skipping the examination will benefit the seller significantly.
Getting the ball rolling with a clear, stripped-down offer is an absolute must, but we can try to gain some leverage with a couple more tools.
For starters, incorporating an escalation clause in your offer will allow you to outbid the competitors if things become heated. An escalation clause in your offer states that you will beat any bid up to a specified amount.
If another buyer comes along and makes an offer while your escalation clause is in effect, you may be forced to reject them right away because of the escalation clause. This can be dangerous if you find yourself in a heated bidding war and haven’t budgeted properly when determining your price ceiling.
Take your time to consider when you should abandon the bidding. Putting in an offer that starts above the asking price is a more direct strategy to disrupt the competition.
It’s common for buyers to put in offers at – if not below – asking price, so coming right out of the gate above the asking price is sure to beat most of the offers in a seller’s market.
Stand out From Other Buyers
We’ve already created an offer that no sensible seller can refuse, but let’s look at a couple of frills that could also help.
Working with your mortgage lender until you receive your loan pre-approval letter is a fantastic approach to demonstrate to the seller that you’re serious about buying their home and have secured financing. Include a handwritten note to the seller expressing why this is your dream Philadelphia house as another approach to demonstrate your seriousness.
In each of these examples, we’re seeking to add that extra touch of personality to make the offer stand out. If you have the resources, there is one way to usually get around just about any obstacle: a simple cash offer.
Clearly, this option is only feasible for the minority of buyers, but not needing financing through a mortgage lender means skipping just about every obstacle outside of legal requirements, fees, and paperwork. It’s also very uncommon for a full cash offer to be presented, so any seller would have a very hard time passing that up.
Help Navigating a Sellers Market in Philadelphia
If you’re looking to buy a home in a seller’s market and want a partner in the process, contact us today at (215) 385-3055!