It is a highly competitive real estate market in Metro Detroit and many buyers are getting frustrated because they cannot win a home. I am going to put together a list of things you can do to win the bid. Some of this advice is common sense, but I want to list all the different things to do and that I have seen on purchase agreements. In the last few weeks I have seen over 60 offers on homes I was selling so I have seen many different ones. One of the first things you should do is ask your agent to call the listing agent to see what is important to the seller and then try to write your bid to make the seller get what they want.
Here is a beautiful patio
- Pay the seller’s transfer taxes
- Bid over list price ***** within reason and for market conditions. Some houses in the Detroit suburbs are going for 20% over and some are going 5% over. The use of an acceleration clause helps.
- Acceleration clause- This is where you will automatically increase your bid over the next highest offer by $1000, $2000, $5000, $10,000, $25,000. I would still start off with a good bid over list price. Just starting at list price sometimes does not work. (It doesn’t show the seller that you agressively want the house.) When you bid above list and add in an acceleration clause you don’t get lost in the shuffle.
- Waive home inspection or have a very short inspection period, or limit what you will be looking for in a home inspection. I would never recommend this unless you are very knowledgeable and have looked over the house indepth.
- Give free occupancy to the seller for as long as they want to stay in the house.
- Have your realtor reduce their commission and pay your realtor out of your pocket
- Offer seller free plane tickets
- Waive mortgage clause contingency
- Guarantee how much you bring to the table if the house does not appraise. Be sure to put a limit on how high you will guarantee. Give a firm number on what you can afford.
- Do not ask for home warranty
- Get the shortest date for closing if they are not looking for occupancy
- Go with a reputable well known lender that responds well.
- Do not ask for seller’s concessions
- Do not ask for anything that is not listed on the mls ticket (no furniture, no personal items)
- Write a letter about your family and their house that tugs on the seller’s heart strings and tells them how much you love their home. The goal is to have the seller identify with you. So if you are ever in a house where the seller is there….make nice. Say nice things about the house, their decorating, and what matters to the sellers. It’s about establishing a likeability with the sellers.
- Have your agent accept what the seller is offering them in commission. I have seen where the seller is giving 2% commission and the buyer’s agent asks for 3%. Then you lose your home bid because your real estate agent is trying to make more money on the sale. This is a quick way to loose a home bid. Don’t let your agent sabotage your home bid.
Helpful hints on what to do
- Put down the biggest EMD you feel comfortable with
- Chose the best mortgage option so the seller and seller’s agent is happy. They prefer in this order usually….cash, conventional loans with 20% or more down, FHA, USDA, VA loans. The more down you have in a mortgage usually tells the sellers that you have cash, you are a saver, you are financially good, and that you have money to pay an appraisal guarantee.
- Be sure to have your pre-approval letter before you start shopping for a metro Detroit house. A delay in getting this could have you miss out on a home.
- The key is to make your offer as simple as possible. Give the seller what they want! DO NOT ASK FOR ANYTHING IN THE PA THAT THE SELLER DID NOT OFFER! Asking for the piano, or dining room table may move your bid to the bottom of the list.
No matter what you do, or how good your offer is you may still loose the house and the bid. There may be somebody out there that puts in a crazy bid. What I tell all my clients is to put the best offer they can if they love the house. Put your best foot forward. That way you can say you didn’t lose it over not offering $1000 more. In this crazy Metro Detroit seller’s market write a strong offer the first time. You may not get a second shot.
I hope these tips help you win a house. Whether you are my client or somebody else’s if you have the information on what to do it will help you.
Russ Ravary ~~~~your metro Detroit realtor that helps save you money whether you are buying or selling a home Call me to discuss your next move (248) 310-6239
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Here are few of my past articles way back on this website that may interest you.